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# MCQs: Correlation & Regression

The marketing manager of a large supermarket chain would like to use shelf space to predict the sales of pet food. For a random sample of 12 similar stores, she gathered the following information regarding the shelf space, in feet, devoted to pet food and the weekly sales in hundreds of dollars. Use these data to answer questions 8 through 10.

Store 1 2 3 4 5 6
Shelf Space 5 5 5 10 10 10
Weekly Sales 1.6 2.2 1.4 1.9 2.4 2.6

Store 7 8 9 10 11 12
Shelf Space 15 15 15 20 20 20
Weekly Sales 2.3 2.7 2.8 2.6 2.9 3.1

1. Compute the value of the sample correlation coefficient between weekly sales and shelf space.

A. 0.684
B. 0.827
C. 0.652
D. 0.308

2. Is the correlation between weekly sales and shelf space significant at the .01 level of significance?

A. No, the sample correlation coefficient does not exceed the critical value.
B. Yes, the p-value of the test for significance is less than .01.
C. Yes, the value of the test statistic does not exceed the critical value.
D. Yes, the computed t-test statistic is less than the critical value.

3. What is the estimated regression equation?

A. = 2.63 + 0.724x
B. = 1.45 + 0.724x
C. = 1.45 + 0.074x
D. = 2.63 - 0.174x

#### Solution Summary

The solution provides answers to multiple choice questions. Formula for the calculation and interpretation are also included.

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