Evidence Supports Using a Simple Linear Regression Model to Estimate

question 113

Essay

Evidence supports using a simple linear regression model to estimate a person's weight based on a person's height. Let x be a person's height (measured in inches) and y be the person's weight (measured in pounds). A random sample of eleven people was selected and the following data recorded: The following output was generated for the data: Based on the scatterplot above, does a simple linear regression model seem appropriate?
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Justify your answer.
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Use the printout to find the least-squares prediction line. = ______________
Based on the printout, do there appear to be any outliers in the data?
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Justify your answer.
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Consider the following residual plot of the residuals versus the fitted values. What conclusion, if any, can be drawn from the plot?
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Consider the following normal probability plot of the residuals. What conclusion can be drawn from the plot?
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Based on the previous two plots, should you use the model in the computer printout to predict weight?
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Justify your answer.
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Recognize the impact of federal budget choices on economic indicators like aggregate demand and national saving.

Identify legislative and hypothetical actions to manage or reform the federal budget process.

Understand the fiscal year definition and its significance in budget planning.

Know the differences among various federal government spending categories and their economic impacts.

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Definitions:

Alan Greenspan

Former Chairman of the Federal Reserve of the United States, who served from 1987 to 2006 and played a key role in American monetary policy during that period.

Federal Reserve Bank

The Federal Reserve Bank is the central banking system of the United States, which oversees the nation's monetary policy and regulates its financial institutions.

Free Markets

Economic systems in which prices for goods and services are determined by the open market and consumers, with minimal government intervention.

Economic Competition

A condition in markets where businesses or sellers independently strive for the consumers' patronage to achieve a particular business objective, such as profits or market share.