The Regression Output Below Is the Result of Testing Whether

question 20

Multiple Choice

The regression output below is the result of testing whether there is an association between the number of hours of sleep a student had the night before an exam and the number of questions answered correctly on the exam. Assume that the conditions of the linear regression model are satisfied. What is the 95% confidence interval for the intercept (rounded to the nearest hundredth) ? Does this interval support the theory that the intercept is zero? Choose the statement that summarizes your answer in context.

• A)(- 4.64, 4.14). This interval supports the theory that the intercept could be zero. In this context this would mean that a student who had zero hours of sleep could reasonably expect to get a zero on the test.
• B)(- 4.64, 4.14). This interval does not support the theory that the intercept could be zero. In this context this would mean that for approximately every 0.08 hours of sleep, the student could expect to get approximately one test question correct.
• C)(0.03, 0.14). This interval does not support the theory that the intercept could be zero. In this context the intercept is greater than zero so a student could expect to get a positive score on the test even if they did not get any hours of sleep.
• D)None of these

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Definitions:

Risk-Free Return

The return on an investment with no risk of financial loss, typically associated with government bonds.

Treynor Measure

A performance metric on investment funds that accounts for the risk taken by the investment relative to the market risk as measured by beta.

Risk-Free Return

The theoretical rate of return of an investment with zero risk of financial loss.

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and size of cash flows, providing a more accurate measure of personal investment performance.