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DSST Principles of Statistics Exam Prep

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Executives at a national mining company insist that their employees did not contract lung cancer from occupational pollutants. They develop a regression model that shows 67% of the lung cancers reported are due to other factors such as personal smoking and genetic predisposition. The random error term in the linear regression model indicates:

  1. a numerical estimate of the relationship between the independent and dependent variables
  2. a numerical estimate of factors outside the independent variable
  3. a numerical estimate of factors outside the dependent variable
  4. a numerical estimate of the relationship between the intercept and the slope
Explanation

Answer: B - The random error term in the linear regression model indicates a numerical estimate of factors outside the independent variable.

Key Takeaway: The random error term in a linear regression model provides a numerical estimate of factors that are not study in a particular research study. In this example, the mining company executives are asserting that 67% of lung cancer causes are due to factors outside the independent variable, which in this case are the occupational pollutants.

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