1. In a simple regression analysis (where Y is dependent and X is independent), if the Y intercept is positive, then
A. there is a positive correlation between X and Y
B. there is a negative correlation between X and Y
C. if X is increased, Y must also increase
D. if Y is increased, X must also increase
E. none of the above

2. In regression analysis, the variable that is being predicted is the
A. dependent variable
B. independent variable
C. intervening variable
D. none of the above

3. A procedure used for finding the equation of a straight line which provides the best approximation for the relationship between the independent variable and the dependent variable is the 
A. correlation analysis
B. mean squares method
C. least squars method
D. most squares method
E. none of the above

4. Application of the least sqares method results in values of the y intercept and the slope which minimizes the sum of the squared deviations between the 
A. observed values of the independent variable and the estimated values of the independent variable
B. actual values of the independent variable and the estimated values of the dependent variable
C. observed values of the dependent variable and the estimated values of the dependent variable
D. none of the above

5. A regression asnalysis between the sales (Y in $1000) and advertising (X in dollars) resulted in the following equation: 
y-hat = 50000 + 6x
The above equation implies that an 
A. increase of $6 in advertising is associated with an increase of $6000 in sales
B. increase of $1 in advertising is associated with an increase of $6 in sales
C. increase of $1 in advertising is associated with an increase of $56,000 oin sales
D. increase of $1 in advertising is associated with an increase of $6000 in sales
E. none of the above

6. Larger values of r² imply that the observations are more closely grouped about the 
A. average value of the independent variables
B. average value of the dependent variables
C. least squares line
D. origin
E. none of the above

7. In regression analysis, whcih of the following is not a required assumption about the error term e?
A. The expected value of the error term is 0
B. The vari\nce for the error term is the same for all values of X
C. The values of the error term are independent
D. The error term is normally distributed
E. All of the above are required assumptions about the error term

8. In a regression and correlation analysis if the r² = 1, then
A. SSE = SST
B. SSE = 1
C. SSR = SSE
D. SSR = SST
E. none of the above

Use the following data for the next two questions.
Regression analysis was applied between sales data (in $1000s) and advertising data (in $100s) and the following information was obtained
y-hat = 12 +1.8x
n = 17
SSR = 225
SSE = 75
S_b1 = 0.2683

9. The t-statistic for testing the significance of the slope is 
A. 1.80
B. 1.96
C. 6.708
D. 0.555
E. none of the above

10. The critical t-value for testing the significance of the slope is 
A. 1.756
B. 2.131
C. 1.746
D. 2.120
E. none of the above