Instruction 12 $\text { Regression statistics }$ Note: 2051E-05 = 2

question 108

Multiple Choice

Instruction 12.8
It is believed that the average numbers of hours spent studying per day (HOURS) during undergraduate education should have a positive linear relationship with the starting salary (SALARY, measured in thousands of dollars per month) after graduation. Given below is the Microsoft Excel output for predicting starting salary (Y) using number of hours spent studying per day (X) for a sample of 51 students. NOTE: Only partial output is shown.
$\text { Regression statistics }$
$\begin{array}{|l|l|}\hline\text { MultipleR } & 0.8857 \\\hline \text { R Square } & 0.7845 \\\hline \begin{array}{l}\text { Adjusted R } \\\text { Square }\end{array} & 0.7801 \\\hline \text { Standard Error } & 1.3704 \\\hline \text { Observations } & 51\\\hline\end{array}$

$\begin{array}{l}\text { ANOVA }\\\begin{array}{|l|l|l|l|l|l|l|}\hline & d f & 55 & \text { MS } & F & \begin{array}{l}\text { Significance } \\F\end{array} & \\\hline \text { Regression } & 1 & 335.0472 & 335.0473 & 178.3859 & & \\\hline \text { Residual } & & & 1.8782 & & & \\\hline \text { Total } & 50 & 427.0798 & & & & \\\hline\end{array}\end{array}$

$\begin{array}{|l|l|l|l|l|l|l|}\hline & \text { Coefficients } & \begin{array}{l}\text { Standard } \\\text { Error }\end{array} & \text { tStat } & \text { p-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -1.8940 & 0.4018 & -4.7134 & 2.051 \mathrm{E}-05 & -2.7015 & -1.0865 \\\hline \text { Hours } & 0.9795 & 0.0733 & 13.3561 & 5.944 \mathrm{E}-18 & 0.8321 & 1.1269 \\\hline\end{array}$ Note: 2.051E-05 = 2.051 * 10S1^-0.5 and 5.944E-18 = 5.944 * 10S1^-18.
-Referring to Instruction 12.8,the estimated average change in salary (in thousands of dollars) as a result of spending an extra hour per day studying is

• A) 0.9795.
• B) 0.7845.
• C) 335.0473.
• D) -1.8940.

---

Definitions:

Restatement (Third)

A collection of volumes intended to inform the judiciary, lawyers, and others about general principles of common law in various areas.

Section 402A

A section of the Restatement (Second) of Torts relating to the liability of sellers for harm caused by defective products.

Design Defects

Flaws in the intended design of a product that pose a risk to consumers or fail to perform safely as intended, leading to potential legal liability.

Strict Liability

A legal doctrine that holds a party responsible for their actions or products without the plaintiff having to prove negligence or fault.