I Trying to Predict Weekly Sales with a Standard Error

question 24

Multiple Choice

i. Trying to predict weekly sales with a standard error of estimate of $1,955, we would conclude that
68 percent of the predictions would not be off more than $1,955, 95 percent would not be off by
More $3,910, and 99.7 percent would not be off by more than $5,865.
ii. The smaller the sample, the smaller the possible error as measured by the standard error of
Estimate.
iii. Approximately 95% of the values lie within two standard errors of the regression line.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Commerce Department

A department within a government responsible for regulating, promoting, and facilitating trade and commerce activities.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, often used as an indicator of inflation.

CPI

Stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

CPI

The Consumer Price Index tracks the average variation in prices that urban consumers pay for a selection of consumer goods and services over a period of time.