The least squares method minimizes and identifies the range

Question

1).  The least squares method minimizes which of the following?

            a).  SST

            b).  SSR

            c).  SSE

            d).  none of the above

2).  Which of the following identifies the range for a correlation coefficient?

            a).  Any value less than 1

            b).  Any value greater than 1

            c).  Any value between 0 and 1

            d).  None of the above

3).  A correlation coefficient r_xy = -0.85 could indicate a:

            a).  Relatively weak, positive linear relationship

            b).  Relatively strong, negative linear relationship

            c).  Relatively weak, negative linear relationship

            d).  Relatively strong, positive linear relationship

4).  If the coefficient of determination R² = 0, then

            a).  there is no relationship between X and Y.

            b).  the explained variation equals the unexplained variation.

            c).  there is no unexplained variation.

            d).  there is no explained variation.

5).  Which of the following statements is least accurate concerning correlation analysis?

            a).  Correlation does not imply causation.

            b).  The correlation coefficient captures only a linear relationship.

c).  The correlation coefficient may not be a reliable measure when outliers are present in one or both of the variables.

d). The correlation coefficient describes both the direction and strength of the relationship between two variables only if the two variables have the same units of measurement.

6).  When testing whether the correlation coefficient differs from zero, the value of the test statistic is        t_test = 1.95 with a corresponding p-value of .0653.  At the 5% significance level, can you conclude that the correlation coefficient differs from zero?

            a).  Yes, since the p-value exceeds .05.

            b).  Yes, since the test statistic value of 1.95 exceeds .05.

            c).  No, since the p-value exceeds .05

            d).  No, since the test statistic value of 1.95 exceeds .05.

7).  The Y-intercept (b₀) can be thought of as representing the

            a).  predicted value of Y.

            b).  change in Y per unit change in X.

            c).  predicted value of Y when X=0.

            d).  variation around the regression line.

8).  The variance of the rates of return is .25 for Stock X and .01 for Stock Y.  The covariance between the returns of X and Y is -.01.  The correlation of the rates of return between X and Y is:

            a).  -.25

            b).  -.20

            c).  .20

            d).  4.00

9).  A regression equation was estimated as y = 155 + 34X₁ - 12X₂.  If X₁ = 3 and X₂ = 2, the predicted value of Y would be:

            a).  29

            b).  77

            c).  233

            d).  281

Attachment:- STAT_Question.zip