I Trying to Predict Weekly Sales with a Standard Error

question 141

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. Approximately 95% of the values lie within two standard errors of the regression line.
iii. The smaller the sample, the smaller the possible error as measured by the standard error of estimate.

• 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.

---

Definitions:

Generalized Anxiety

A mental disorder characterized by persistent and excessive worry about a variety of things.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.

Flaws

Imperfections, mistakes, or weaknesses that may detract from the overall value or functionality of something.

Mistakes

Mistakes are actions or decisions that are incorrect or unwise, often resulting from a lack of knowledge or judgment.