In the standard regression equation y- a + bx, how is the letter £> best described?
Answer(s): D
In the standard regression equation, b is the slope of the regression line.
How is the letter x in the standard regression equation best described?
Answer(s): A
The letter x in the standard regression equation is the independent variable. For example, in a regression to determine the total cost of production, x equals units produced.
A division uses a regression in which monthly advertising expenditures are used to predict monthly product sales (both in millions of US dollars). The results show a regression coefficient for the independent variable equal to 0.8. This coefficient value indicates that:
Answer(s): C
The regression coefficient represents the change in the dependent variable corresponding to a unit change in the independent variable. Thus, it is the slope of the regression line, represented by b in the linear equation y= a + bx.
Quality control programs employ many tools for problem definition and analysis. A scatter diagram is one of these tools. The objective of a scatter diagram is to:
The objective of a scatter diagram is to depict degrees of correlation. Each observation is represented by a dot on a graph corresponding to specific values of x (the independent variable) and y (the dependent variable).
A regression equation:
Regression analysis is used to find an equation for the linear relationship among variables. The behavior of the dependent variable is explained in terms of one or more independent variables. Regression analysis is often used to estimate a dependent variable (such as cost) given a known independent variable (such as production).
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