Question

just answer multiple choice

Simple Linear Regression Analysis Regression Statistics MultipleR R Square Adjusted R Square Standard Error Observations 0.8854 0.7839 0.7299 16.2986 6 ANOVA MS Significance F Regression Residual Total 3855.4217 3855.4217 14.5135 1062.5783 265.6446 4918.0000 0.0189 4 5 Coefficients Standard Error P-value Lowe r 95% Upper95% 234.0193 3 13.0703 Lower95% Upper 95% Intercept Price (X) 161.3855 48.1928 tStat 26.1607 6.1690 0.0035 12.6502 3.8097 0.0189 88.7518 83.3153 88.7518 234.01925 83.3153 13.07026

5E) Which one of the statement A-E is the correct interpretation of the Y-intercept?

There is no practical interpretation since one cannot have zero years of sales.

The model predicts that the annual sale is $161.3855 when their years of experience are zero.

The model predicts an increase of annual sale of $161.3855 if the price goes up by $1.

The model predicts an increase in annual sales of $11369.4 if the price goes up by $1.

E. None of the above statements is correct.

5F) Which one of the statement A-E is the correct interpretation of the Standard Error of the Estimate?

$160 is the standard deviation of the years of experience.

78.2% of the variation in the annual salaries is explained by the variation in the years of experience.

For each additional 1 year of sale, the prediction error increases by approximately $16.2986

$16.2986 is the standard deviation of the observed annual sale around the regression line.

None of the above statement is correct.

5G) At alpha (α) =.05, can we reject the null hypothesis that the slope of the population regression line is zero?

No, because alpha (α) is equal to p-value.
Yes, because a sample size of 6 is big enough to determine that the normality assumption has been met.
Yes, because the slope of the least square line is -48.1928, and not zero.
Yes because p-value 0.000< .05 (α).
Can’t be determined from the information given.

Answer 1

5E) There is no practical interpretation since one cannot have zero years of sales, beacuse intercept has meaning unless until the value of predictor becomes zero.

5F) $16.2986 is the standard deviation of the observed annual sale around the regression line. Standard error is nothing but the standard deviation of a statistic.

5G) Yes, because the slope of the least square line is -48.1928, and not zero. We are teating H0:b0=0 Vs H1:b0 is not eual to zero, Since p value < 0.05, H0 is rejected.