1. ECON 338/ENVR 305 CLICKER QUESTIONS Statistics – Question Set #8 (from Chapter 10)

2. The linear correlation coefficient measures the _____ between two variables x and y. 1. strength of the linear relationship 2. direction of the linear relationship 3. strength and direction of any relationship 4. strength of the nonlinear relationship 5. strength and direction of the linear relationship Response Counter

3. The three assumptions made in deriving a simple linear regression model include each of the following except: 1. the relationship between x and the mean of the y-values in the sub-population determined by x is linear. 2. we expect the error to be a normally distributed random variable with a mean of zero. 3. the relationship between x and the y-values in the population determined by x is linear. 4. The random variation associated with different observations are independent. Response Counter

4. Which of the following statements correctly interprets the meaning of the slope of the least squares regression line for housing rental rates: y= 0.0011x + 0.2748? 1. For each unit increase in x (additional 1 square foot of housing) the average monthly rent increases by about 0.2748 units ($274.80). 2. For each unit increase in x the average monthly rent increases by about 0.0011 units ($1.1). 3. For each unit increase in x the average monthly rent decreases by about 0.0011 units ($1.1). 4. For each unit increase in x the average monthly rent decreases by about 813.0121 units ($813,012). 5. For each unit increase in x the average monthly rent decreases by about 0.2748 units (about $274.80). Response Counter