Use Computer Software to Find the Multiple Regression Equation A) $\mathrm { CO } = 1.37 + 5.50 \mathrm { TAR } - 1.38 \mathrm { NIC }$

question 12

Multiple Choice

Use computer software to find the multiple regression equation. Can the equation be used for prediction? An anti-smoking group used data in the table to relate the carbon monoxide( CO)
Of various brands of cigarettes to their tar and nicotine (NIC) content. $\begin{array}{ccc}\hline \text { CO } & \text { TAR } & \text { NIC } \\\hline 15 & 1.2 & 16 \\15 & 1.2 & 16 \\17 & 1.0 & 16 \\6 & 0.8 & 9 \\1 & 0.1 & 1 \\8 & 0.8 & 8 \\10 & 0.8 & 10 \\17 & 1.0 & 16 \\15 & 1.2 & 15 \\11 & 0.7 & 9 \\18 & 1.4 & 18 \\16 & 1.0 & 15 \\10 & 0.8 & 9 \\7 & 0.5 & 5 \\18 & 1.1 & 16 \\\hline\end{array}$

• A) \(\mathrm { CO } = 1.37 + 5.50 \mathrm { TAR } - 1.38 \mathrm { NIC }\); Yes, because the \(P\)-value is high.
• B) \(\mathrm { CO } = 1.37 - 5.53 \mathrm { TAR } + 1.33 \mathrm { NIC }\); Yes, because the \(R ^ { 2 }\) is high.
• C) \(\mathrm { CO } = 1.25 + 1.55 \mathrm { TAR } - 5.79 \mathrm { NIC }\); Yes, because the \(P\)-value is too low.
• D) \(\mathrm { CO } = 1.3 + 5.5 \mathrm { TAR } - 1.3 \mathrm { NIC }\); Yes, because the adjusted \(R ^ { 2 }\) is high.

---

Definitions:

Stock Split

An increase in a firm’s shares outstanding without any change in owner’s equity.

Retained Earnings

Profit that is not distributed to the shareholders but is kept by the company for future investment or to pay off debt.

Dividend Income

Income received from owning shares of a company in the form of dividends.