Question: 1: Find the sample correlation coefficient for the following data. Data set A: Sales Area 10.2 41 36.8 150 182.8 755 35.3 125 144.5 488

1: Find the sample correlation coefficient for the following data.

Data set A:

Sales

Area

10.2

41

36.8

150

182.8

755

35.3

125

144.5

488

63.4

282

16.7

62

35.7

123

37

155

20.7

76

33

129

3

10

3.2

10

9.1

32

65.2

266

59.9

270

17.8

63

5.6

24

1.9

8

127

410

47.9

187

2.8

9

(Answer here.)

2: Create a scatter plot for Data set A. Is the relationship linear?

(Insert scatter plot here; right click on chart in Excel, then copy. Then right click again to Paste into this Word document.)

Run a simple regression for the following data and produce the output necessary to answer the following questions.

Data set B

Per Person Average Spend (X)

Average Weekly Sales (Y)

6.8090

31,778

7.5717

10,513

6.8877

17,214

7.1300

19,937

7.0420

19,193

6.9310

14,280

7.1142

24,732

7.1274

29,642

6.5822

24,040

6.7677

24,447

6.6611

22,282

7.0309

26,909

7.0334

13,525

6.9964

27,540

7.3802

22,399

7.1779

17,727

7.3526

18,033

6.9531

22,180

7.0190

23,748

6.8495

20,608

7.1644

20,484

6.9920

30,112

7.2836

19,540

7.0671

16,156

7.0503

18,407

6.5384

23,285

6.7031

22,841

6.9098

14,490

7.5825

18,307

Insert output here

3: Is the regression model for Data set B significant at the .05 level?

Answer here:

4: What is the coefficient of determination for the simple regression model for Data set B?

Answer here:

5: Extra credit: A researcher wished to predict the price of homes ($1000s) using size (square footage), distance, and whether the home had a garage as independent (explanatory) variables. The results were as follows.

Price (in thousands of dollars)

Size (square feet)

Distance (miles from central city)

Garage: 0 = no garage; 1 = garage

Regression Statistics

Multiple R

0.636

R Square

0.404

Adjusted R Square

0.386

Standard Error

36.896

Observations

105

ANOVA

df

SS

MS

F

Significance F

Regression

3

93272.93

31090.98

22.84

0.0000

Residual

101

137494.66

1361.33

Total

104

230767.59

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

78.71

36.69

2.15

0.0343

5.93

151.49

Size

0.06

0.01

4.09

0.0001

0.03

0.09

Distance

-1.45

0.80

-1.81

0.0733

-3.03

0.14

Garage

44.71

8.25

5.42

0.0000

28.34

61.08

What independent variable is not significant at the .05 significance level?

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