1. What is a simple linear regression?

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2. In this equation define what each of the variables are:

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3. In terms of slope, what is the differences between positive, negative and no linear relationship

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4. What is coefficient of determination (r2)?

5. What is the meaning of a 0.8 coefficient of correlation?

6. In a multiple regression, P values shouldn’t be used to eliminate more than one variable at a time. Why?

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7. What is the use of an adjusted r2 value in a multiple regression?

Using the Excel Data Analysis add-on solve:

8. As HR manager you wonder how effective training is at reducing scrap. For the last 5 years you track training hrs. vs scrap level.

Year | Training | Scrap |

2012 | 200 | 5000 |

2013 | 300 | 4900 |

2014 | 400 | 4300 |

2015 | 500 | 4200 |

2016 | 600 | 4000 |

What is the F value and at 95% significance does it support a linear relationship? If so, what is the equation? What % of the variation is explained by the model? What are the upper and lower values for the regression coefficients?

9. You are tracking production output and years’ experience.

Years’ experience | output |

1 | 2000 |

2 | 2012 |

3 | 1900 |

4 | 2020 |

At 95% significance, does the F value support a linear relationship between years’ experience and output?

10. As the production manager, you have been putting more time in preventative maintenance & operator training. You want to quantify what this has meant for output.

Year | PM hrs | Training | Ouput |

2011 | 300 | 200 | 20000 |

2012 | 330 | 210 | 20200 |

2013 | 500 | 260 | 21000 |

2014 | 510 | 280 | 21050 |

2015 | 600 | 330 | 22000 |