Question

6.If all the points in a scatter diagram lie on the least squares regression line, then the coefficient of correlation must be:

1. 1.0

2. -1.0

3. either 1.0 or -1.0

4. 0.0

b.

A regression analysis between sales (in $1,000) and advertising (in $1,000) resulted in the following least square line: ý = 80 + 5x. This implies that:

1. as advertising increases by $1,000, sales increases by $5,000.

2. as advertising increases by $1,000, sales increases by $80,000.

3. as advertising increases by $5, sales increases by $80.

4. none of these choices.

Answer 1

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