Question

6. SS can never be a. Larger than SST d. Equal to zero c. Equal to 1 b. Smaller than SST 7. A regression analysis between profit Y (in $1000) and price X (in dollars) resulted in the following equatic Y - 60,000 - 9X The above equation implies that an a, increase of Si in price is associated with a decrease of $9 in profit b. increase of S8 in price is associated with an increase of $9,000 in profit c. increase of $1 in price is associated with a decrease of $42,000 in profit d. increase of S1 in price is associated with a decrease of $9000 in profit 8. In linear regression, the confidence interval can be wider than the prediction interval. a. True b. False In a regression and correlation analysis if R-1, then

Answer 1

6) option a is right

Total sum of squares (SST) is the sum of squared deviations of the individual measurements from the mean. It is the sum of 2 portions:
(1) Regression sum of squares (SSR)
(2) Error sum of squares (SSE)

7) Y is defined in $1000 and X is in dollars

Hence an increase in X will result in a decrease of 9 units of Y and Y is defined in $1000

Hence a decrease of $9000

Hence option d is right

8)Prediction interval accounts for the uncertainty in estimating the population mean and random variation of the individual values. So a prediction interval is always wider than a confidence interval.

Option b is right