1. The strength of the linear relationship between two numerical variables may be measured by the
[removed] 
scatter diagram. 

[removed] 
coefficient of correlation. 

[removed] 
slope. 

[removed] 
Yintercept. 
10 points
Question 2
If you wanted to analyze the correlation between the NUMBER OF HOURS PRACTICED and the NUMBER OF TARGETS HIT by a sharpshooter, which variable would be the dependent variable?
[removed] 
Number of hours practiced 

[removed] 
Number of targets hit 

[removed] 
Neither one is dependent 

[removed] 
Either one could be dependent (impossible to determine) 
10 points
Question 3
Before proceeding with a simple linear regression, you should first construct a scatter diagram in order that you can remove all outliers from the data.
[removed]True
[removed]False
10 points
Question 4
What does it mean to have a negative coefficient in the regression model?
[removed] 
That variable reduces the coefficient of determination. 

[removed] 
The values for that variable are negative. 

[removed] 
There is an inverse relationship with that variable. 

[removed] 
The correlation is weak. 
10 points
Question 5
Assuming a linear relationship between X and Y, if the coefficient of correlation (r) equals 0.30,
[removed] 
there is no correlation. 

[removed] 
the slope (b1) is negative. 

[removed] 
variable X is larger than variable Y. 

[removed] 
the variance of X is negative.

10 points
Question 6
If the hypothesis test for correlation is found to be significant (i.e., we rejected the null hypothesis / accepted the alternate hypothesis), what can we automatically conclude about the strength of the correlation?
[removed] 
We can conclude that the correlation must be strong. 

[removed] 
We can only conclude that the correlation is not weak 

[removed] 
We cannot conclude anything about the strength of the correlation yet. 
10 points
Question 7
A negative correlation coefficient implies that as the value of independent variable increases, the value of the dependent variable _________________.
[removed] 
Increases 

[removed] 
Decreases 

[removed] 
Cannot be determined from the information given 
10 points
Question 8
There is a strong positive correlation between a baby’s weight and the size of his/her vocabulary. From this we can conclude that overeating will improve one’s vocabulary.
[removed]True
[removed]False
10 points
Question 9
If the correlation coefficient (r) = 1.00, then
[removed] 
all the data points must fall exactly on a straight line with a slope that equals 1.00. 

[removed] 
all the data points must fall exactly on a straight line with a negative slope. 

[removed] 
all the data points must fall exactly on a straight line with a positive slope. 

[removed] 
all the data points must fall exactly on a horizontal straight line with a zero slope. 
10 points
Question 10
Assume the regression model for predicting home prices by the square footage were: PRICE = 12510 + 83 (SQRFT) For every additional one square foot, how much does the price increase?
[removed] 
$12,593 

[removed] 
$83 

[removed] 
$166 

[removed] 
Cannot be determined from the information given. 
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