linear regression
Chapter 13
Linear Regression and Correlation
True/False
1. If a scatter diagram shows very little scatter about a straight line drawn through the plots, it indicates a rather weak correlation.
Answer: False Difficulty: Easy Goal: 1
2. A scatter diagram is a chart that portrays the correlation between a dependent variable and an independent variable.
Answer: True Difficulty: Easy Goal: 1 AACSB: AS
3. An economist is interested in predicting the unemployment rate based on gross domestic product. Since the economist is interested in predicting unemployment, the independent variable is gross domestic product.
Answer: True Difficulty: Medium Goal: 1 AACSB: REF
4. There are two variables in correlation analysis referred to as the dependent and determination variables.
Answer: False Difficulty: Easy Goal: 1
5. Correlation analysis is a group of statistical techniques used to measure the strength of the relationship (correlation) between two variables.
Answer: True Difficulty: Easy Goal: 2 AACSB: AS
6. The purpose of correlation analysis is to find how strong the relationship is between two variables.
Answer: True Difficulty: Easy Goal: 2
7. Originated by Karl Pearson about 1900, the coefficient of correlation describes the strength of the relationship between two, interval or ratio-scaled variables.
Answer: True Difficulty: Easy Goal: 2
8. The coefficient of correlation, r, is often referred to as Spearman's rho.
Answer: False Difficulty: Easy Goal: 2
9. The coefficient of correlation r is often referred to as the Pearson product-moment correlation coefficient.
Answer: True Difficulty: Easy Goal: 2
10. A correlation coefficient equal to –1 or +1 indicates perfect correlation.
Answer: True Difficulty: Easy
Linear Regression and Correlation
True/False
1. If a scatter diagram shows very little scatter about a straight line drawn through the plots, it indicates a rather weak correlation.
Answer: False Difficulty: Easy Goal: 1
2. A scatter diagram is a chart that portrays the correlation between a dependent variable and an independent variable.
Answer: True Difficulty: Easy Goal: 1 AACSB: AS
3. An economist is interested in predicting the unemployment rate based on gross domestic product. Since the economist is interested in predicting unemployment, the independent variable is gross domestic product.
Answer: True Difficulty: Medium Goal: 1 AACSB: REF
4. There are two variables in correlation analysis referred to as the dependent and determination variables.
Answer: False Difficulty: Easy Goal: 1
5. Correlation analysis is a group of statistical techniques used to measure the strength of the relationship (correlation) between two variables.
Answer: True Difficulty: Easy Goal: 2 AACSB: AS
6. The purpose of correlation analysis is to find how strong the relationship is between two variables.
Answer: True Difficulty: Easy Goal: 2
7. Originated by Karl Pearson about 1900, the coefficient of correlation describes the strength of the relationship between two, interval or ratio-scaled variables.
Answer: True Difficulty: Easy Goal: 2
8. The coefficient of correlation, r, is often referred to as Spearman's rho.
Answer: False Difficulty: Easy Goal: 2
9. The coefficient of correlation r is often referred to as the Pearson product-moment correlation coefficient.
Answer: True Difficulty: Easy Goal: 2
10. A correlation coefficient equal to –1 or +1 indicates perfect correlation.
Answer: True Difficulty: Easy