BANA 2 Final Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
What would be the coefficient of determination if the total sum of squares (SST) is 155 and
the sum of squares due to error (SSE) is 54? - CORRECT ANSWER .65
Fitting a model too closely to sample data, resulting in a model that does not accurately
reflect the population is termed as which of the following? - CORRECT
ANSWER Overfitting
Create a PivotTable in Excel to display the average number of Facebook Friends for students
in each major. What is the average for Business Analytics Majors? - CORRECT
ANSWER 107.3
Home Depot, a home-improvement retailer, sells several brands of washing machines. The
attached file contains a sample of 24 models of full-size washing machines sold by Home
Depot in 2016, with each observation recording the washing machine capacity (in cubic feet)
and the list price (in $). Build a quadratic regression model to predict price using washing
machine capacity. Using your regression equation what is the predicted price for a washing
machine capacity of 5.2? - CORRECT ANSWER 1069.95
Construct a line chart for the time series data for years 1 through 5 showing the number of
vehicles manufactured by each automotive company. Show the time series for all four
manufacturers on the same graph. Which of the manufacturers shows a pattern that is
significantly different from the others? - CORRECT ANSWER Hyundai
What is the difference between the observed value of the dependent variable and the value
predicted using the estimated regression equation? - CORRECT ANSWER Residual
In a linear regression model, the variable that is being predicted or explained is known as
which of the following? It is denoted by y and is often referred to as the response variable. -
CORRECT ANSWER Dependent Variable
, Making visual comparisons between categorical variables may be difficult in a _____. -
CORRECT ANSWER Pie Chart
Jensen Tire & Auto is deciding whether to purchase a maintenance contract for its new
computer wheel alignment and balancing machine. Managers feel that maintenance expense
should be related to usage, and they collected the following information on weekly usage
(hours) and annual maintenance expense (in hundreds of dollars). Use the data to develop an
estimated regression equation that could be used to predict the annual maintenance expense
in hundreds of dollars (y) for a given number of hours of weekly usage (x). Using the
estimated regression equation if the weekly usage is 19, what is the estimated annual
maintenance expense in hundreds of dollars? - CORRECT ANSWER GOT WRONG
Which one of the following is used in predictive analytics? - CORRECT
ANSWER linear regression
Deleting the grid lines in a table and the horizontal lines in a chart ______. - CORRECT
ANSWER increases the data-ink ratio
Which of the following is used to test the hypothesis that the values of the regression
parameters 𝛽1, 𝛽2, ... 𝛽q are all zero? - CORRECT ANSWER An F-test
_______________ analytics use techniques that take input data and yield a best course of
action. - CORRECT ANSWER Prescriptive
The charts that are helpful in making comparisons between categorical variables are which of
the following? - CORRECT ANSWER Bar Charts and Column Charts
The least squares regression line minimizes the sum of which of the following? - CORRECT
ANSWER the squared differences between actual and predicted y-values
To include education in a regression model where education is defined by a categorical
variable with 6 different levels, the number of dummy variables required is - CORRECT
ANSWER 5
QUESTIONS AND CORRECT ANSWERS
What would be the coefficient of determination if the total sum of squares (SST) is 155 and
the sum of squares due to error (SSE) is 54? - CORRECT ANSWER .65
Fitting a model too closely to sample data, resulting in a model that does not accurately
reflect the population is termed as which of the following? - CORRECT
ANSWER Overfitting
Create a PivotTable in Excel to display the average number of Facebook Friends for students
in each major. What is the average for Business Analytics Majors? - CORRECT
ANSWER 107.3
Home Depot, a home-improvement retailer, sells several brands of washing machines. The
attached file contains a sample of 24 models of full-size washing machines sold by Home
Depot in 2016, with each observation recording the washing machine capacity (in cubic feet)
and the list price (in $). Build a quadratic regression model to predict price using washing
machine capacity. Using your regression equation what is the predicted price for a washing
machine capacity of 5.2? - CORRECT ANSWER 1069.95
Construct a line chart for the time series data for years 1 through 5 showing the number of
vehicles manufactured by each automotive company. Show the time series for all four
manufacturers on the same graph. Which of the manufacturers shows a pattern that is
significantly different from the others? - CORRECT ANSWER Hyundai
What is the difference between the observed value of the dependent variable and the value
predicted using the estimated regression equation? - CORRECT ANSWER Residual
In a linear regression model, the variable that is being predicted or explained is known as
which of the following? It is denoted by y and is often referred to as the response variable. -
CORRECT ANSWER Dependent Variable
, Making visual comparisons between categorical variables may be difficult in a _____. -
CORRECT ANSWER Pie Chart
Jensen Tire & Auto is deciding whether to purchase a maintenance contract for its new
computer wheel alignment and balancing machine. Managers feel that maintenance expense
should be related to usage, and they collected the following information on weekly usage
(hours) and annual maintenance expense (in hundreds of dollars). Use the data to develop an
estimated regression equation that could be used to predict the annual maintenance expense
in hundreds of dollars (y) for a given number of hours of weekly usage (x). Using the
estimated regression equation if the weekly usage is 19, what is the estimated annual
maintenance expense in hundreds of dollars? - CORRECT ANSWER GOT WRONG
Which one of the following is used in predictive analytics? - CORRECT
ANSWER linear regression
Deleting the grid lines in a table and the horizontal lines in a chart ______. - CORRECT
ANSWER increases the data-ink ratio
Which of the following is used to test the hypothesis that the values of the regression
parameters 𝛽1, 𝛽2, ... 𝛽q are all zero? - CORRECT ANSWER An F-test
_______________ analytics use techniques that take input data and yield a best course of
action. - CORRECT ANSWER Prescriptive
The charts that are helpful in making comparisons between categorical variables are which of
the following? - CORRECT ANSWER Bar Charts and Column Charts
The least squares regression line minimizes the sum of which of the following? - CORRECT
ANSWER the squared differences between actual and predicted y-values
To include education in a regression model where education is defined by a categorical
variable with 6 different levels, the number of dummy variables required is - CORRECT
ANSWER 5
