A Random Sample of 19 Companies from the Forbes 500

question 11

Multiple Choice

A random sample of 19 companies from the Forbes 500 list was selected, and the relationship between sales (in hundreds of thousands of dollars) and profits (in hundreds of thousands of dollars) was investigated by regression. The following simple linear regression model was used: profits =  +  (sales) , where the deviations were assumed to be independent and Normally distributed, with mean 0 and standard deviation . This model was fit to the data using the method of least squares. The following results were obtained from statistical software. r² = 0.662
S = 466.2 The approximate slope of the least-squares regression line is:

• A)0.09.
• B)0.0075.
• C)-176.64.
• D)61.16.

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Definitions:

Fisher's Exact Test

A statistical significance test used to examine the association between two categorical variables in a contingency table, especially useful for small sample sizes.

Yates' Correction

A statistical adjustment made to the chi-squared test for small sample sizes, to better approximate the chi-squared distribution.

Expected Frequencies

The predicted counts of occurrences across different categories or intervals that one would expect by chance.

Fisher's Exact Test

A statistical significance test used to determine if there are nonrandom associations between two categorical variables, often employed when sample sizes are small.