Final BUSA 3132 Exam 2026 Questions
and Answers
If we reject H0: beta 1= beta 2 =0 using the F-test, then we should conclude that
both slopes are different from zero. - Correct answer-fasle
In a multiple regression analysis with N observations and k independent variables,
the degrees of freedom for the residual error is given by (N - k - 1). - Correct
answer-True
A t-test is used in testing the significance of an individual independent variable. -
Correct answer-True
You are given the following sample data for two variables:
Y= 10,8,12,15,16,10,10,8,12
X=100,110,90,200,150,100,80,90,150
The sample correlation coefficient for these data is approximately r = 0.755 -
Correct answer-false
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,The least squares simple linear regression line minimizes the sum of the vertical
deviations between the line and the data points. - Correct answer-False
A simple linear regression model is an equation that describes the straight-line
relationship between a dependent variable and an independent variable. - Correct
answer-true
A scatterplot can help determine if two variables are related in some systematic
way - Correct answer-True
In regression, the variable that is being predicted is usually referred to as the
independent variable. - Correct answer-False
Hope Hernandez, Marketing Manager of People's Pharmacy, Inc., wants a
regression model to predict sales in the greeting card department. Her data set
includes two qualitative variables: the pharmacy neighborhood (urban, suburban,
and rural), and lighting level in the greeting card department (soft, medium, and
bright). The number of dummy variables needed for "lighting level" in Hope's
regression model is ______. - Correct answer-2
Alan Bissell, a market analyst for City Sound Mart, is analyzing sales of heavy
metal CD's. Alan's dependent variable is annual heavy metal CD sales (in
$1,000,000's), and his independent variables are teenage population (in 1,000's)
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,and type of sales district (1 = urban, 0 = rural). Regression analysis of the data
yielded the following table. (16,1) - Correct answer-$1,566,666 lower sales in the
urban district
Yvonne Yang, VP of Finance at Discrete Components, Inc. (DCI), wants a
regression model which predicts the average collection period on credit sales. Her
data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and
6%), and total assets of credit customers (small, medium, and large). The number
of dummy variables needed for "total assets of credit customer" in Yvonne's
regression model is ________. - Correct answer-2
If the coefficient of determination is 0.9, the percentage of variation in the
dependent variable explained by the variation in the independent variable - Correct
answer-is 90%
In a regression analysis if SSE = 500 and SSR = 300, r 2 = _________. - Correct
answer-.3750
For a certain data set the regression equation is y = -3x + 2. The correlation
coefficient between y and x in this data set _______. - Correct answer-is negative
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, Inspection of the following table of correlation coefficients for variables in a
multiple regression analysis reveals potential multicollinearity with variables
___________. (21,1) - Correct answer-x4 and x2
The proportion of variability of the dependent variable accounted for or explained
by the independent variable is called the _______. - Correct answer-coefficient of
determination
A cost accountant is developing a regression model to predict the total cost of
producing a batch of printed circuit boards as a function of batch size (the number
of boards produced in one lot or batch). The explanatory variable is ______. -
Correct answer-batch size
A market analyst is developing a regression model to predict monthly household
expenditures on groceries as a function of family size, household income, and
household neighborhood (urban, suburban, and rural). The response variable in this
model is _____. - Correct answer-expenditures on groceries
The numerical value of the coefficient of correlation must be _______ - Correct
answer-between -1 and +1
The following ANOVA table is from a multiple regression analysis.
Soure. df . SS. MS. F. P
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and Answers
If we reject H0: beta 1= beta 2 =0 using the F-test, then we should conclude that
both slopes are different from zero. - Correct answer-fasle
In a multiple regression analysis with N observations and k independent variables,
the degrees of freedom for the residual error is given by (N - k - 1). - Correct
answer-True
A t-test is used in testing the significance of an individual independent variable. -
Correct answer-True
You are given the following sample data for two variables:
Y= 10,8,12,15,16,10,10,8,12
X=100,110,90,200,150,100,80,90,150
The sample correlation coefficient for these data is approximately r = 0.755 -
Correct answer-false
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,The least squares simple linear regression line minimizes the sum of the vertical
deviations between the line and the data points. - Correct answer-False
A simple linear regression model is an equation that describes the straight-line
relationship between a dependent variable and an independent variable. - Correct
answer-true
A scatterplot can help determine if two variables are related in some systematic
way - Correct answer-True
In regression, the variable that is being predicted is usually referred to as the
independent variable. - Correct answer-False
Hope Hernandez, Marketing Manager of People's Pharmacy, Inc., wants a
regression model to predict sales in the greeting card department. Her data set
includes two qualitative variables: the pharmacy neighborhood (urban, suburban,
and rural), and lighting level in the greeting card department (soft, medium, and
bright). The number of dummy variables needed for "lighting level" in Hope's
regression model is ______. - Correct answer-2
Alan Bissell, a market analyst for City Sound Mart, is analyzing sales of heavy
metal CD's. Alan's dependent variable is annual heavy metal CD sales (in
$1,000,000's), and his independent variables are teenage population (in 1,000's)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,and type of sales district (1 = urban, 0 = rural). Regression analysis of the data
yielded the following table. (16,1) - Correct answer-$1,566,666 lower sales in the
urban district
Yvonne Yang, VP of Finance at Discrete Components, Inc. (DCI), wants a
regression model which predicts the average collection period on credit sales. Her
data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and
6%), and total assets of credit customers (small, medium, and large). The number
of dummy variables needed for "total assets of credit customer" in Yvonne's
regression model is ________. - Correct answer-2
If the coefficient of determination is 0.9, the percentage of variation in the
dependent variable explained by the variation in the independent variable - Correct
answer-is 90%
In a regression analysis if SSE = 500 and SSR = 300, r 2 = _________. - Correct
answer-.3750
For a certain data set the regression equation is y = -3x + 2. The correlation
coefficient between y and x in this data set _______. - Correct answer-is negative
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Inspection of the following table of correlation coefficients for variables in a
multiple regression analysis reveals potential multicollinearity with variables
___________. (21,1) - Correct answer-x4 and x2
The proportion of variability of the dependent variable accounted for or explained
by the independent variable is called the _______. - Correct answer-coefficient of
determination
A cost accountant is developing a regression model to predict the total cost of
producing a batch of printed circuit boards as a function of batch size (the number
of boards produced in one lot or batch). The explanatory variable is ______. -
Correct answer-batch size
A market analyst is developing a regression model to predict monthly household
expenditures on groceries as a function of family size, household income, and
household neighborhood (urban, suburban, and rural). The response variable in this
model is _____. - Correct answer-expenditures on groceries
The numerical value of the coefficient of correlation must be _______ - Correct
answer-between -1 and +1
The following ANOVA table is from a multiple regression analysis.
Soure. df . SS. MS. F. P
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