The Nevada Gaming Control Board’s “Gaming Revenue Report” published on December 31, 2015, contains a wide array of data pertaining to gambling revenues in Nevada. The file titled Nevada Revenues contains data for seven of the most popular gambling games on both the number of units for each game statewide and the total winnings by the house (in $thousands).
a. Develop a scatter plot for the two variables showing number of units as the independent variable and winnings as the dependent variable. Calculate the correlation coefficient and discuss.
b. Develop a regression model that uses the number of units to explain the variation in winnings between the various games. Show the regression equation and indicate what percentage of the variation in the dependent variable is explained by the independent variable.
c. Referring to part b, test to determine whether the regression coefficient is statistically significant using an alpha = 0.05 level.