A decision maker is considering including two additional variables into a regression model that has as the dependent variable, Total Sales.
The first additional variable is the region of the country (North, South, East, or West) in which the company is located. The second variable is the type of business (Manufacturing, Financial, Information Services, or Other). Given this, how many additional variables will be incorporated into the model?A) 2
B) 6
C) 8
D) 9
Q. 2Given the data below, one ran the simple regression analysis of Y on X.
Y X
4 2
3 1
4 4
6 3
8 5
The relationship between Y and X is
A) significant at the alpha = 1 percent level.
B) significant at the alpha = 5 percent level.
C) significant at the alpha = 10 percent level.
D) not significant at the alpha = 10 percent level.
Q. 3Which of the following is not among the most common sources of variation?
A) People
B) Materials
C) Methods
D) Quotas
Q. 4The Cresswell Company updates its annual sales forecast every month as new sales data becomes available. The one-month update is called:
A) the planning horizon.
B) the forecast period.
C) the forecast interval.
D) the forecasting horizon.
Q. 5A regression analysis between sales (Y) and advertising (X) (both in dollars) resulted in the following equation:y= 100 + 2000XThe above equation implies that an
A) increase of 1 in advertising is correlated with an increase of 2,000 in sales.
B) increase of 1 in advertising is correlated with an increase of 2 in sales.
C) increase of 1 in advertising is correlated with an increase of 100 in sales.
D) increase of 1 in advertising is correlated with an increase of 2100 in sales.
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