Kiplinger’s Personal Finance Magazine rated 359 U.S. metropolitan areas to determinethe best cities to live, work, and play. The data contained in the data set named Metro Areasshow the data from the Kiplinger study for the 50 metropolitan areas with a population of1,000,000 or more (Kiplinger’s website, March 2, 2009). The data set includes the followingvariables: Population, Income, Cost of Living Index, and Creative (%). Population is thesize of the population in 1000s; Income is the median household income in $1000s; Cost ofLiving Index is based on 100 being the national average; and Creative (%) is the percentageof the workforce in creative fields such as science, engineering, architecture, education, art,and entertainment. Workers in creative fields are generally considered an important factor inthe vitality and livability of a city and a key to future economic prosperity.a. Develop a scatter diagram for these data with median household income as the independent variable and the percentage of the workforce in creative fields as the dependent variable. Does a simple linear regression model appear to be appropriate?b. Develop a scatter diagram for these data with the cost of living index as the independent variable and the percentage of the workforce in creative fields as the dependentvariable. Does a simple linear regression model appear to be appropriate?c. Use the data provided to develop the best estimated multiple regression equation forestimating the percentage of the workforce in creative fields.
Kiplinger’s Personal Finance Magazine rated 359 U.S. metropolitan areas to determine
the best cities to live, work, and play. The data contained in the data set named Metro Areas
show the data from the Kiplinger study for the 50 metropolitan areas with a population of
1,000,000 or more (Kiplinger’s website, March 2, 2009). The data set includes the following
variables: Population, Income, Cost of Living Index, and Creative (%). Population is the
size of the population in 1000s; Income is the median household income in $1000s; Cost of
Living Index is based on 100 being the national average; and Creative (%) is the percentage
of the workforce in creative fields such as science, engineering, architecture, education, art,
and entertainment. Workers in creative fields are generally considered an important factor in
the vitality and livability of a city and a key to future economic prosperity.
a. Develop a
b. Develop a scatter diagram for these data with the cost of living index as the independent variable and the percentage of the workforce in creative fields as the dependent
variable. Does a simple linear regression model appear to be appropriate?
c. Use the data provided to develop the best estimated multiple regression equation for
estimating the percentage of the workforce in creative fields.
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