The article referenced in the previous exercise also gave data on the percentage of operating costs covered by park revenues for the 2007€“2008 fiscal year.

a. Find the equation of the least-squares line relating y = percent of operating costs covered by park revenues and x = number of employees.
b. Based on the values of r2 and se, do you think that the least-squares regression line does a good job of describing the relationship between y = percent of operating costs covered by park revenues and x 5 number of employees? Explain.
c. The graph in Figure EX5.40 is a scatterplot of y 5 percent of operating costs covered by park revenues and x = number of employees. The least-squares line is also shown. Which observations are outliers? Do the observations with the largest residuals correspond to the park districts with the largest number of employees?

Transcribed Image Text:

Number of Employees, x 95 95 102 69 Percent of Operating Cost Covered by Park Revenues, y 37 19 32 80 17 81 116 51 36 36 32 38 40