1. Answers to DRQ 7
(2pts) In the simple linear regression model, yi = b0 + b1xi + ei, give the technical names of yi, xi, and ei. If b1=.6 interpret this coefficient.
yi (dependent variable or endogenous variable), xi (explanatory variable or exogenous variable), and ei (error term or disturbance term)
b1=.6 interpretation:
A one unit change in x leads to a .6 unit change in y. It is the slope of the simple linear regression relationship

2. DRQ #7 Capps pts October 11, 2011
(2pts) In the simple linear regression model, yi = b0 + b1xi + ei, give the technical names of yi, xi, and ei. If b1=.6 interpret this coefficient.
( 1pt) 2. (a) Which of the following diagrams best describes the relationship of units sold (CE) of a firm and A which corresponds to advertising expenditures of the firm? D is the answer
(b) What is the technical name of the respective diagrams? Scatter plot
3. Concerning descriptive statistics of variable indigenous to regression analysis,
(1/2 pt) The skewness coefficient for the variable PSE is The distribution of PSE has a tail on the __left____________. a) c) b) d) . . CE A . A CE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A CE CE A

3. ( ½ pt) 4. The acronym OLS stands for Ordinary Least Squares.
(1 pt) Calculate the median of the following sample of observations for a variable labeled DTV:
18, 10, 14, 19, 17, 15, 12, 15, 21, 16, 11
Arrange in ascending order:
10,11,12,14,15,15,16,17,18,19,21
Median: the 50th percentile is 15