Below is the output of a regression model where gross revenue in million dollars is dependent variable and DVD revenue in million dollars is an independent variable and alpha is 0.05. Coefficients: Estimate Std. Error. t value Pr(>|t|)
(Intercept) 44.4359 10.4303 4.260 0.000116
DVDrevenue 2.8932 0.3393 8.527 1.27e-10
1. Which one is the correct sample regression line?
a. Mean gross revenue = 44.4359 + 2.89*DVD revenue.
b. Gross revenue = 44.4359 + 2.89*DVD revenue.
c. DVD revenue = 44.4359 + 2.89*Gross revenue.
d. Mean DVD revenue = 44.4359 + 2.89*Gross revenue.
2. Is the independent variable in this regression model statistically significant?
a. No since p-value (0.000116) is less than 0.05 alpha.
b. No since p-value (1.27e-10) is less than 0.05 alpha.
c. Yes since p-value (0.000116) is less than 0.05 alpha.
d. Yes since p-value (1.27e-10) is less than 0.05 alpha.
3. Which one is the correct H0 and H1 for a test with p-value, 1.27e-10?
a. H0: Slope of gross revenue is not 0
H1: Slope of gross revenue is 0.
b. H0: Slope of DVD revenue = 0
H1: Slope of DVD revenue is not 0.
c. H0: Slope of DVD revenue is not 0
H1: Slope of DVD revenue is 0.
d. H0: Slope of gross revenue = 0
H1: Slope of gross revenue is not 0.
4. Which one is the correct interpretation of Estimate of DVD revenue, 2.8932?
a. If gross revenue is up by one million dollar, mean DVD revenue is up by 2.8932 million dollars.
b. If gross revenue is up by one million dollar, DVD revenue is up by 2.8932 million dollars.
c. If DVD revenue is up by one million dollar, gross revenue is up by 2.8932 million dollars.
d. If DVD revenue is up by one million dollar, mean gross revenue is up by 2.8932 million dollars.
5. Below is the output of a regression model where gross revenue in million dollars is dependent variable and DVD revenue in million dollars is an independent variable and alpha is 0.05.
Residual standard error: 38.04 on 41 degrees of freedom
Multiple R-squared: 0.6395, Adjusted R-squared: 0.6307
F-statistic: 72.72 on 1 and 41 DF, p-value: 1.265e-10
Which one is the correct one for Multiple R squared, 0.639?
a. 63.9 % of variations of gross revenue is explained by DVD revenue.
b. 63.9 % of variations of DVD revenue is explained by gross revenue.
c. 63.9 % chance that gross revenue can be predicted by DVD revenue.
d. 63.9 % chance that DVD revenue can be predicted by gross revenue.