1. If two variables are correlated, is it necessary that they have a linear relationship?

2. Correlated variables can have zero correlation coeffficient. True or False?

3. The graph below represents a regression line predicting Y from X. The values on the graph shows the residuals for each predictions value. Use this information to compute the SSE.

4. Height and weight are well known to be positively correlated. Ignoring the plot scales (the variables have been standardized), which of the two scatter plots (plot1, plot2) is more likely to be a plot showing the values of height (Var1 – X axis) and weight (Var2 – Y axis).

5. Suppose the distribution of salaries in a company X has median $35,000, and 25th and 75th percentiles are $21,000 and $53,000 respectively. Would a person with Salary $1 be considered an Outlier?

6. Which of the following option is true regarding “Regression” and “Correlation” ? Note: y is dependent variable and x is independent variable.