Use Computer Software to Find the Multiple Regression Equation A) $\mathrm { CO } = 1.37 - 5.53 \mathrm { TAR } + 1.33 \mathrm { NIC }$

question 44

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 of various brands of cigarettes to their tar and nicotine content. $$\begin{array} { | c c c | } \hline \hline \text { CO } & \text { TAR } & \text { NIC } \\\hline 15 & 1.2 & 16 \\15 & 1.2 & 16 \\17 & 1.0 & 16 \\6 & 0.8 & 9 \\1 & 0.1 & 1 \\8 & 0.8 & 8 \\10 & 0.8 & 10 \\17 & 1.0 & 16 \\15 & 1.2 & 15 \\11 & 0.7 & 9 \\18 & 1.4 & 18 \\16 & 1.0 & 15 \\10 & 0.8 & 9 \\7 & 0.5 & 5 \\18 & 1.1 & 16 \\\hline\end{array}$$

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

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Definitions:

Return on Equity

A financial ratio measuring the profitability of a company expressed as a percentage of equity, indicating how effectively a company uses its equity investments to generate profits.

Total Assets

The sum of all assets owned by a company, including both current and fixed assets, giving an overview of the company's financial health.

Sales

The exchange of a commodity for money; the action of selling something.

Control Process

A systematic approach to managing and regulating the activities and operations within an organization to ensure they meet set objectives.