Identify the Components of Simple Linear Regression Models and Discuss

question 49

Multiple Choice

Identify the components of simple linear regression models and discuss their applications Use the data given below to answer the following question(s) .
Following is an extract from the database of a construction company. The table shows the height of walls in feet and the cost of raising them. The estimated simple linear regression equation is given as Ŷ = b0 + b1X. (Hint: Use Excel functions) . $$\begin{array} { | l | l | } \hline\begin{array} { l } \text { Height } \\\text { (ft) }\end{array} & \text { Cost (\$) } \\\hline 4 & 670 \\\hline 3 & 430 \\\hline 7 & 810 \\\hline 9 & 1100 \\\hline 6 & 790 \\\hline 8 & 880 \\\hline 5 & 760 \\\hline 11 & 1200 \\\hline\end{array}$$
-Which of the following is true about Excel outputs Multiple R?

• A) It is often referred to as the coefficient of determination.
• B) A value of 0 indicates positive correlation.
• C) A negative slope of the regression line denotes a positive Multiple R.
• D) It is another name for the sample correlation coefficient, r.

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Definitions:

Profit To Distributors

The financial gain that distributors achieve from selling products after accounting for their cost of goods sold and operating expenses.

Production Era

A period in business thought where the main focus was on manufacturing efficiency and product output, with little attention to the consumer.

Marketing Concept

A business philosophy that holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value.

Customer Relationship

The approach and techniques a business uses to manage and analyze interactions with its customers, aiming to improve loyalty and grow sales.