It has been argued that a shopper can have too many choices when considering a major purchase, leading to increased shopping anxiety. (See, for example, The Paradox of Choice Why More Is Less by Barry Schwartz.) In a study of shopping behavior, simple linear regression was used to link the number of alternatives presented to a shopper and the shopper’s score on a scale measuring the shopper’s confidence that he/ she has made the right purchase choice. Data for the study are given below:
Show the data in a scatter diagram and use the least squares criterion to find the slope (b = ====) and the intercept (a) for the best fitting line. Sketch the least squares line in your scatter diagram. Use the line to estimate the change in score that can be associated with each additional choice presented.
Answer to relevant QuestionsRefer to Exercise 1 (Jessica’s coffee shop), where the least squares line is ˆy = 660 6.8x. a. Report the SSE and s y. x values. b. Tell what these measures represent. Refer to Exercise 8 (hedge fund returns and administrator compensation), where the least squares line is ˆy = 2.2 .55x. a. Report the SSE and syx values. b. One of the properties of the least squares line is that it ...Compute and interpret the r2 and r values for the regression analysis described in Exercise 4 (employee turnover). Refer to Demonstration Exercise 11.1 where we are trying to link tolerance for risk (x) to the % of financial assets that an investor has invested in the stock market (y). The estimated regression equation turned out to be ...The following data— from a study of four American manufacturing companies— are available for a simple linear regression analysis attempting to link average hourly wage (x) to employee turnover rates (y). a. Show the data ...
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