MAT490

Special Topics in Mathematics

WEEK 3
1) The Y -intercept (b 0) represents the
A) predicted value of Y when X = 0. B) variation around the sample regression line.
C) predicted value of Y. D) change in estimated Y per unit change in X.

2) The scatter plot is a two dimensional graph that is used to graphically represent the relationship between
two variables.

3) A correlation of -0.9 indicates a weak linear relationship between the variables.

TABLE 12-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do
this, the company randomly chooses six small cities and offers the candy bar at different prices. Using candy bar sales as
the dependent variable, the company will conduct a simple linear regression on the data below:

City Price ($) Sales

River Falls 1.30 100
Hudson 1.60 90
Ellsworth 1.80 90
Prescott 2.00 40
Rock Elm 2.40 38
Stillwater 2.90 32

4) Referring to Table 12-2, what is the estimated mean change in the sales of the candy bar if price goes up by
$1.00?
A) 161.386 B) -3.810 C) -48.193 D) 0.784

Solve the problem.

5) For the following table of data,
a. Draw a scatterplot.
b. Calculate the correlation coefficient.
c. Calculate the least squares line and graph it on the scatterplot.
d. Predict the y-value when x is 17.

x 1 2 3 4 5 6 7 8 9
y 5 4.5 4 4 3 3.5 2.5 2 1

y y

6 6

4 4

2 2

2 4 6 8 10 x 2 4 6 8 10 x

Find the correlation coefficient.

6) Consider the data points with the following coordinates:
x 62 53 64 52 52 54 58
y 158 176 151 164 164 174 162

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SCENARIO 12-3

The director of cooperative education at a state college wants to examine the effect of cooperative education job
experience on marketability in the work place. She takes a random sample of 4 students. For these 4, she finds out how
many times each had a cooperative education job and how many job offers they received upon graduation. These data are
presented in the table below.

Student CoopJobs JobOffer

1 1 4
2 2 6
3 1 3
4 0 1

7) Referring to Scenario 12-3, set up a scatter plot.

SCENARIO 13-11

A computer software developer would like to use the number of downloads (in thousands) for the trial version of his new
shareware to predict the amount of revenue (in thousands of dollars) he can make on the full version of the new
shareware. Following is the output from a simple linear regression along with the residual plot and normal probability
plot obtained from a data set of 30 different sharewares that he has developed:

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8) Referring to Scenario 13-11, which of the following is the correct interpretation for the coefficient of
determination?
A) 75.54% of the variation in the number of downloads can be explained by the variation in revenue.
B) 74.67% of the variation in the number of downloads can be explained by the variation in revenue.
C) 74.67% of the variation in revenue can be explained by the variation in the number of downloads.
D) 75.54% of the variation in revenue can be explained by the variation in the number of downloads.

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SCENARIO 13-2

A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do
this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as
the dependent variable, the company will conduct a simple linear regression on the data below:

City Price ($) Sales

River Falls 1.30 100
Hudson 1.60 90
Ellsworth 1.80 90
Prescott 2.00 40
Rock Elm 2.40 38
Stillwater 2.90 32

9) Referring to Scenario 13-2, what is the percentage of the total variation in candy bar sales explained by the
regression model?
A) 78.39% B) 100% C) 48.19% D) 88.54%

10) A manufacturing company is interested in predicting the number of defects that will be produced each hour
on the assembly line. The managers believe that there is a relationship between the defect rate and the
production rate per hour. The managers believe that they can use production rate to predict the number of
defects. The following data were collected for 10 randomly selected hours.

Defects Production Rate Per Hour

20 400
30 450
10 350
20 375
30 400
25 400
30 450
20 300
10 300
40 300

Given these sample data, the simple linear regression model for predicting the number of defects is
approximately y^ = 5.67 + 0.048x.

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Answer Key
Testname: MAT490 MATHEMATICS WEEK 3

1) A
2) TRUE
3) FALSE
4) C
5) a.
y

2 4 6 8 10 x

b. -0.965
c. Y = -0.45x + 5.53
y

2 4 6 8 10 x

d. -2.12
6) -0.7749
7)

8) D
9) A
10) TRUE
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