1.

If the correlation between body weight and annual income were high and
positive, we could conclude that:
(a) high incomes cause people to eat more food.
(b) low incomes cause people to eat less food.
(c) high income people tend to spend a greater proportion of their income
on food than low income people, on average.
(d) high income people tend to be heavier than low income people, on average.
(e) high incomes cause people to gain weight.

2. A study found a correlation of r = −0.61 between the sex of a worker and

his or her income. You conclude that:
(a) women earn more than men on average.
(b) women earn less than men on average.
(c) an arithmetic mistake was made; this is not a possible value of r.
(d) this is nonsense because r makes no sense here.
(e) the correlation of −0.61 is not meaningful here because the relationship
between sex and income is likely nonlinear.

3. The correlation coefficient provides:

(a) a measure of the extent to which changes in one variable cause changes in another variable.
(b) a measure of the strength of the linear association between two categorical variables.
(c) a measure of the strength of the association between two categorical variables.
(d) a measure of the strength of the linear association between two quantitative variables.

4. When looking at a sequence of monthly postal revenue data, we note that the revenue is
consistently highest in December. The high December revenue is an illustration of:
(a) trend
(b) seasonal variation
(c) irregular fluctuations
(d) a cycle

5. The following data come from a time series of yearly sales of equipment by a large
manufacturer:
Year 1968 1969 1970 1971 1972 1973 1974
Units Sold 330 241 200 499 322 500 601
In order to smooth this series a running moving average of 3 is calculated. The smoothed series for
the years 1969 to 1973 respectively is:
(a) 200 200 200 322 322 (b) 330 499 499 500 601
(c) 241 241 322 499 500 (d) 257 313 340 440 474

6. Given that we have collected pairs of observations on two variables X and Y, we would consider
fitting a straight line with X as an explanatory variable if:
(a) the change in Y is an additive constant.
(b) the change in Y is a constant for each unit change in X
(c) the change in Y is a fixed percent of Y
(d) the change in Y is exponential
(e) none of the above

7. The least squares regression line is the line which is:

(a)determined by use of a function of the distance between the observed Y ’s and the predicted Y s
(b) which has the smallest sum of the squared residuals of any line through the data values.
(c) for which the sum of the residuals about the line is zero.
(d) which has all of the above properties
(e) which has none of the above properties.

8. The following information was obtained from the manager of a city water
department for predicting the consumption of water (in gallons) from the
size of household: Household Water(x) Size Used(y)
The summary statistics:
∑X = 57, ∑Y = 10, 038, ∑X2 = 433, ∑Y2 = 11, 641, 474, ∑XY = 67, 669
The equation of the least squares regression for water consumption on household size is given by:
(a) Y = 97053.7 + 96.692X
(b) Y = 999.220 + 0.803X
(c) Y = −1.0028 + 0.0067X
(d) Y = 452.66 + 96.692X
(e) Y = 1003.8 − 96.692X

9. For children between the ages of 18 months and 29 months, there is approximately a linear
relationship between “height” and “age”. The relationship can be represented by: bY = 64.93 +
0.63(x), where Y represents height (in centimetres) and X represents age (in months). Joseph is
22.5 months old and is 80 centimetres tall. What is Joseph’s residual?
(a) 79.1
(b) -0.9
(c) +0.9
(d) 56.6
(e) 64.93

10. For children, there is approximately a linear relationship between “height” and “age”. One
child was measured monthly. Her height was 75 cm at 3 years of age and 85 cm when she was
measured 18 months later. A least squares line was fit to her data. The slope of this line is
approximately:
(a) 0.55 cm/m
(b) 10 cm/m
(c) 25 cm/m
(d) 1.57 cm/m
(e) 2.1 cm/m

11. The mean of a distribution is 14 and the standard deviation is 5. What is the value of the
coefficient of variation?
(a) 48.3%
(b) 35.7%
(c) 27.8%
(d) 60.4%

12. A 95 % confidence interval:

a. can only be used in parametric data
b. it is a test of the null hypothesis
c. it is calculated at ± 1.96 times the standard error of the mean
d. is useful when comparing data with another population