Statistics for Business & Economics, Revised (MindTap Course List)
12th Edition
ISBN: 9781285846323
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Question
Chapter 16.1, Problem 3E
a.
To determine
Decide whether there appears to be linear relationship between x and y.
b.
To determine
Construct the estimated regression equation that relates x and y.
c.
To determine
Plot the standardized residual versus the
Explain whether the model assumptions appear to be satisfied.
d.
To determine
Perform a logarithmic transformation on the variable y.
Construct the estimated regression equation using the transformed dependent variable.
Decide whether the model assumptions appear to be satisfied by using the transformed dependent variable.
Explain whether a reciprocal transformation works better in this case.
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Consider the following data for two variables, x and y.
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(c)
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Consider the following data for two variables, x and y.x 2 3 4 5 7 7 7 8 9y 4 5 4 6 4 6 9 5 11a. Does there appear to be a linear relationship between x and y? Explain.b. Develop the estimated regression equation relating x and y.c. Plot the standardized residuals versus yˆ for the estimated regression equation developed in part (b). Do the model assumptions appear to be satisfied? Explain.d. Perform a logarithmic transformation on the dependent variable y. Develop an estimated regression equation using the transformed dependent variable. Do the modelassumptions appear to be satisfied by using the transformed dependent variable?Does a reciprocal transformation work better in this case? Explain
The managing director of a company wants to find whether there is a relationship between units of a product produced and the profits in a period of 12 months.
Month
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Units produced (X)‘000
2
3
5
8
11
10
12
15
17
18
20
24
Profits (Y) ‘000
3
5
8
11
13
14
16
20
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i. Calculate the regression equation of the form Y = a + bX and hence estimate the value of the profits when 25,000 units are produced.
ii. Calculate the regression equation of the form X = a + bY and hence estimate the value of the units produced when 27,000 in profits is made.
iii. Calculate and both the Pearson correlation coefficient and coefficient of determination, interpret both and justify in this case why it would be prudent to rely on the coefficient of determination rather than Pearson in decision…
Chapter 16 Solutions
Statistics for Business & Economics, Revised (MindTap Course List)
Ch. 16.1 - Consider the following data for two variables, x...Ch. 16.1 - Consider the following data for two variables, x...Ch. 16.1 - Prob. 3ECh. 16.1 - A highway department is studying the relationship...Ch. 16.1 - In working further with the problem of exercise 4,...Ch. 16.1 - A study of emergency service facilities...Ch. 16.1 - In 2011, home prices and mortgage rates fell so...Ch. 16.1 - Corvette, Ferrari, and Jaguar produced a variety...Ch. 16.1 - Kiplingers Personal Finance Magazine rated 359...Ch. 16.2 - In a regression analysis involving 27...
Ch. 16.2 - In a regression analysis involving 30...Ch. 16.2 - The Ladies Professional Golfers Association (LPGA)...Ch. 16.2 - Refer to exercise 12. a. Develop an estimated...Ch. 16.2 - A 10-year study conducted by the American Heart...Ch. 16.2 - In baseball, an earned run is any run that the...Ch. 16.4 - A study provided data on variables that may be...Ch. 16.4 - The Ladies Professional Golfers Association (LPGA)...Ch. 16.4 - Jeff Sagarin has been providing sports ratings for...Ch. 16.4 - Prob. 19ECh. 16.5 - Consider a completely randomized design involving...Ch. 16.5 - Prob. 21ECh. 16.5 - Prob. 22ECh. 16.5 - The Jacobs Chemical Company wants to estimate the...Ch. 16.5 - Four different paints are advertised as having the...Ch. 16.5 - An automobile dealer conducted a test to determine...Ch. 16.5 - A mail-order catalog firm designed a factorial...Ch. 16.6 - The following data show the daily closing prices...Ch. 16.6 - Refer to the Cravens data set in Table 16.5. In...Ch. 16 - A sample containing years to maturity and yield...Ch. 16 - Consumer Reports tested 19 different brands and...Ch. 16 - A study investigated the relationship between...Ch. 16 - Refer to the data in exercise 31. Consider a model...Ch. 16 - Refer to the data in exercise 31. a. Develop an...Ch. 16 - Prob. 34SECh. 16 - Rating Wines from the Piedmont Region of Italy...
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