O They all have the same standard deviation O They all have mean (expected value) O O They are all independent of each other O They all follow a binomial distribution Which of the following is true about the regression line? O The regression line minimizes the MSE of forecast errors O The regression line is the line with the largest prediction accuracy O The regression line minimizes the sum of the squares of the residuals O Regression may only be performed if the standard regression assumptions hold. O All of the above. d. Is the slope of the regression line positive or negative? O Positive O Negative O Neither O There is not enough information to tell. е. What is the null hypothesis for your hypothesis test? O Ho: Bo>0

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I believe that cars with more mileage are worth less money. I decide to run a statistical analysis at the a = 0.01 significance level to test
my claim. From a large website specializing in selling used cars, I sample 6 used 2012 sedans at random. For each sedan, I record
Its mileage and the price that the car is listed at Data are as follows:
Mileage
145720
83100
74430
50430
36500
108940
Price
3910
11550
10100
9170
15340
9070
Assume that responses follow the model
Price = Bo - BiIMileage) + E
Where the error terms e satisfy the standard regression assumptions
Compute the correlation between price and mileage. (Round answers to 4 decimal points)
a.
Correlation:
Transcribed Image Text:I believe that cars with more mileage are worth less money. I decide to run a statistical analysis at the a = 0.01 significance level to test my claim. From a large website specializing in selling used cars, I sample 6 used 2012 sedans at random. For each sedan, I record Its mileage and the price that the car is listed at Data are as follows: Mileage 145720 83100 74430 50430 36500 108940 Price 3910 11550 10100 9170 15340 9070 Assume that responses follow the model Price = Bo - BiIMileage) + E Where the error terms e satisfy the standard regression assumptions Compute the correlation between price and mileage. (Round answers to 4 decimal points) a. Correlation:
b.
Which of the following is NOT an assumption made on the standard regression assumptions?
O They all have the same standard deviation
O They all have mean (expected value) O
O They are all independent of each other
O They all follow a binomial distribution
Which of the following is true about the regression line?
O The regression line minimizes the MSE of forecast errors
O The regression line is the line with the largest prediction accuracy.
O The regression line minimizes the sum of the squares of the residuals.
O Regression may only be performed if the standard regression assumptions hold.
O All of the above.
d.
Is the slope of the regression line positive or negative?
O Positive
O Negative
O Neither
O There is not enough information to tell.
е.
What is the null hypothesis for your hypothesis test?
O Ho: Bo>0
O Ho: Bo <0
O Ho: Bo = 0
O Ho: Bo #0
O Ho: B1>0
O Ho: B1<0
O Ho: B1= 0
O Ho: B1#0
Transcribed Image Text:b. Which of the following is NOT an assumption made on the standard regression assumptions? O They all have the same standard deviation O They all have mean (expected value) O O They are all independent of each other O They all follow a binomial distribution Which of the following is true about the regression line? O The regression line minimizes the MSE of forecast errors O The regression line is the line with the largest prediction accuracy. O The regression line minimizes the sum of the squares of the residuals. O Regression may only be performed if the standard regression assumptions hold. O All of the above. d. Is the slope of the regression line positive or negative? O Positive O Negative O Neither O There is not enough information to tell. е. What is the null hypothesis for your hypothesis test? O Ho: Bo>0 O Ho: Bo <0 O Ho: Bo = 0 O Ho: Bo #0 O Ho: B1>0 O Ho: B1<0 O Ho: B1= 0 O Ho: B1#0
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