Question:

Complete the problems below from the textbook. You will need to use the “Baseball 2012 Data,” “Buena School District Bus Data,” and the “Century National Bank Data” files for this assignment.

- Chapter 13 – Problem 63
- Chapter 13 – Problem 64
- Chapter 14 – Problem 35
- Chapter 14 Case A – Century National Bank

For problems requiring computations, please ensure that your Excel file includes the associated cell computations and/or statistics output. This information is needed in order to receive full credit on these problems.

63. Refer to the Baseball 2012 data, which reports information on the 2012 Major League

Baseball season. Let attendance be the dependent variable and total team salary, in

millions of dollars, be the independent variable. Determine the regression equation and

answer the following questions.

a. Draw a scatter diagram. From the diagram, does there seem to be a direct relationship

between the two variables?

b. What is the expected attendance for a team with a salary of $80.0 million?

c. If the owners pay an additional $30 million, how many more people could they expect to

attend?

d. At the .05 significance level, can we conclude that the slope of the regression line is

positive? Conduct the appropriate test of hypothesis.

e. What percentage of the variation in attendance is accounted for by salary?

f. Determine the correlation between attendance and team batting average and between

attendance and team ERA. Which is stronger? Conduct an appropriate test of hypothesis

for each set of variables.

64. Refer to the Buena School bus data. Develop a regression equation that expresses the relationship

between age of the bus and maintenance. The age of the bus is the independent

variable.

a. Draw a scatter diagram. What does this diagram suggest as to the relationship between

the two variables? Is it direct or indirect? Does it appear to be strong or weak?

b. Develop a regression equation. How much does an additional year add to the maintenance

cost. What is the estimated maintenance cost for a 10-year-old bus?

c. Conduct a test of hypothesis to determine whether the slope of the regression line is

greater than zero. Use the .05 significance level. Interpret your findings from parts (a),

(b), and (c) in a brief report.

35. Refer to the Buena School District bus data. First, add a variable to change the type of bus

(diesel or gasoline) to a qualitative variable. If the bus type is diesel, then set the qualitative

variable to 0. If the bus type is gasoline, then set the qualitative variable to 1. Develop a

regression equation using statistical software with maintenance as the dependent variable

and age, miles, and bus type as the independent variables.

a. Write out the multiple regression equation analysis. Discuss each of the variables.

b. Determine the value of *R*2. Interpret.

c. Develop a correlation matrix. Which independent variables have strong or weak correlations

with the dependent variable? Do you see any problems with multicollinearity?

d. Conduct the global test on the set of independent variables. Interpret.

e. Conduct a test of hypothesis on each of the independent variables. Would you consider

deleting any of the variables? If so, which ones?

f. Rerun the analysis until only significant regression coefficients remain in the analysis.

Identify these variables.

g. Develop a histogram or a stem-and-leaf display of the residuals from the final regression

equation developed in part (f). Is it reasonable to conclude that the normality assumption

has been met?

h. Plot the residuals against the fitted values from the final regression equation developed

in part (f) against the fitted values of *Y. *Plot the residuals on the vertical axis and the fitted

values on the horizontal axis.

A. The Century National Bank

Refer to the Century National Bank data. Using checking

account balance as the dependent variable and using as

independent variables the number of ATM transactions, the

number of other services used, whether the individual has a

debit card, and whether interest is paid on the particular account,

write a report indicating which of the variables seem

related to the account balance and how well they explain

the variation in account balances. Should all of the independent

variables proposed be used in the analysis or can

some be dropped?

Question:

Complete the problems below from the textbook. You will need to use the “Baseball 2012 Data,” “Buena School District Bus Data,” and the “Century National Bank Data” files for this assignment.

- Chapter 13 – Problem 63
- Chapter 13 – Problem 64
- Chapter 14 – Problem 35
- Chapter 14 Case A – Century National Bank

For problems requiring computations, please ensure that your Excel file includes the associated cell computations and/or statistics output. This information is needed in order to receive full credit on these problems.

63. Refer to the Baseball 2012 data, which reports information on the 2012 Major League

Baseball season. Let attendance be the dependent variable and total team salary, in

millions of dollars, be the independent variable. Determine the regression equation and

answer the following questions.

a. Draw a scatter diagram. From the diagram, does there seem to be a direct relationship

between the two variables?

b. What is the expected attendance for a team with a salary of $80.0 million?

c. If the owners pay an additional $30 million, how many more people could they expect to

attend?

d. At the .05 significance level, can we conclude that the slope of the regression line is

positive? Conduct the appropriate test of hypothesis.

e. What percentage of the variation in attendance is accounted for by salary?

f. Determine the correlation between attendance and team batting average and between

attendance and team ERA. Which is stronger? Conduct an appropriate test of hypothesis

for each set of variables.

64. Refer to the Buena School bus data. Develop a regression equation that expresses the relationship

between age of the bus and maintenance. The age of the bus is the independent

variable.

a. Draw a scatter diagram. What does this diagram suggest as to the relationship between

the two variables? Is it direct or indirect? Does it appear to be strong or weak?

b. Develop a regression equation. How much does an additional year add to the maintenance

cost. What is the estimated maintenance cost for a 10-year-old bus?

c. Conduct a test of hypothesis to determine whether the slope of the regression line is

greater than zero. Use the .05 significance level. Interpret your findings from parts (a),

(b), and (c) in a brief report.

35. Refer to the Buena School District bus data. First, add a variable to change the type of bus

(diesel or gasoline) to a qualitative variable. If the bus type is diesel, then set the qualitative

variable to 0. If the bus type is gasoline, then set the qualitative variable to 1. Develop a

regression equation using statistical software with maintenance as the dependent variable

and age, miles, and bus type as the independent variables.

a. Write out the multiple regression equation analysis. Discuss each of the variables.

b. Determine the value of *R*2. Interpret.

c. Develop a correlation matrix. Which independent variables have strong or weak correlations

with the dependent variable? Do you see any problems with multicollinearity?

d. Conduct the global test on the set of independent variables. Interpret.

e. Conduct a test of hypothesis on each of the independent variables. Would you consider

deleting any of the variables? If so, which ones?

f. Rerun the analysis until only significant regression coefficients remain in the analysis.

Identify these variables.

g. Develop a histogram or a stem-and-leaf display of the residuals from the final regression

equation developed in part (f). Is it reasonable to conclude that the normality assumption

has been met?

h. Plot the residuals against the fitted values from the final regression equation developed

in part (f) against the fitted values of *Y. *Plot the residuals on the vertical axis and the fitted

values on the horizontal axis.

A. The Century National Bank

Refer to the Century National Bank data. Using checking

account balance as the dependent variable and using as

independent variables the number of ATM transactions, the

number of other services used, whether the individual has a

debit card, and whether interest is paid on the particular account,

write a report indicating which of the variables seem

related to the account balance and how well they explain

the variation in account balances. Should all of the independent

variables proposed be used in the analysis or can

some be dropped?

Question:

Complete the problems below from the textbook. You will need to use the “Baseball 2012 Data,” “Buena School District Bus Data,” and the “Century National Bank Data” files for this assignment.

- Chapter 13 – Problem 63
- Chapter 13 – Problem 64
- Chapter 14 – Problem 35
- Chapter 14 Case A – Century National Bank

For problems requiring computations, please ensure that your Excel file includes the associated cell computations and/or statistics output. This information is needed in order to receive full credit on these problems.

63. Refer to the Baseball 2012 data, which reports information on the 2012 Major League

Baseball season. Let attendance be the dependent variable and total team salary, in

millions of dollars, be the independent variable. Determine the regression equation and

answer the following questions.

a. Draw a scatter diagram. From the diagram, does there seem to be a direct relationship

between the two variables?

b. What is the expected attendance for a team with a salary of $80.0 million?

c. If the owners pay an additional $30 million, how many more people could they expect to

attend?

d. At the .05 significance level, can we conclude that the slope of the regression line is

positive? Conduct the appropriate test of hypothesis.

e. What percentage of the variation in attendance is accounted for by salary?

f. Determine the correlation between attendance and team batting average and between

attendance and team ERA. Which is stronger? Conduct an appropriate test of hypothesis

for each set of variables.

64. Refer to the Buena School bus data. Develop a regression equation that expresses the relationship

between age of the bus and maintenance. The age of the bus is the independent

variable.

a. Draw a scatter diagram. What does this diagram suggest as to the relationship between

the two variables? Is it direct or indirect? Does it appear to be strong or weak?

b. Develop a regression equation. How much does an additional year add to the maintenance

cost. What is the estimated maintenance cost for a 10-year-old bus?

c. Conduct a test of hypothesis to determine whether the slope of the regression line is

greater than zero. Use the .05 significance level. Interpret your findings from parts (a),

(b), and (c) in a brief report.

35. Refer to the Buena School District bus data. First, add a variable to change the type of bus

(diesel or gasoline) to a qualitative variable. If the bus type is diesel, then set the qualitative

variable to 0. If the bus type is gasoline, then set the qualitative variable to 1. Develop a

regression equation using statistical software with maintenance as the dependent variable

and age, miles, and bus type as the independent variables.

a. Write out the multiple regression equation analysis. Discuss each of the variables.

b. Determine the value of *R*2. Interpret.

c. Develop a correlation matrix. Which independent variables have strong or weak correlations

with the dependent variable? Do you see any problems with multicollinearity?

d. Conduct the global test on the set of independent variables. Interpret.

e. Conduct a test of hypothesis on each of the independent variables. Would you consider

deleting any of the variables? If so, which ones?

f. Rerun the analysis until only significant regression coefficients remain in the analysis.

Identify these variables.

g. Develop a histogram or a stem-and-leaf display of the residuals from the final regression

equation developed in part (f). Is it reasonable to conclude that the normality assumption

has been met?

h. Plot the residuals against the fitted values from the final regression equation developed

in part (f) against the fitted values of *Y. *Plot the residuals on the vertical axis and the fitted

values on the horizontal axis.

A. The Century National Bank

Refer to the Century National Bank data. Using checking

account balance as the dependent variable and using as

independent variables the number of ATM transactions, the

number of other services used, whether the individual has a

debit card, and whether interest is paid on the particular account,

write a report indicating which of the variables seem

related to the account balance and how well they explain

the variation in account balances. Should all of the independent

variables proposed be used in the analysis or can

some be dropped?

Question:

Question:

- Chapter 13 – Problem 63
- Chapter 13 – Problem 64
- Chapter 14 – Problem 35
- Chapter 14 Case A – Century National Bank

Chapter 13 – Problem 63

Chapter 13 – Problem 64

Chapter 14 – Problem 35

Chapter 14 Case A – Century National Bank

63. Refer to the Baseball 2012 data, which reports information on the 2012 Major League

63. Refer to the Baseball 2012 data, which reports information on the 2012 Major League

Baseball season. Let attendance be the dependent variable and total team salary, in

Baseball season. Let attendance be the dependent variable and total team salary, in

millions of dollars, be the independent variable. Determine the regression equation and

millions of dollars, be the independent variable. Determine the regression equation and

answer the following questions.

answer the following questions.

a. Draw a scatter diagram. From the diagram, does there seem to be a direct relationship

a. Draw a scatter diagram. From the diagram, does there seem to be a direct relationship

between the two variables?

between the two variables?

b. What is the expected attendance for a team with a salary of $80.0 million?

b. What is the expected attendance for a team with a salary of $80.0 million?

c. If the owners pay an additional $30 million, how many more people could they expect to

c. If the owners pay an additional $30 million, how many more people could they expect to

attend?

attend?

d. At the .05 significance level, can we conclude that the slope of the regression line is

d. At the .05 significance level, can we conclude that the slope of the regression line is

positive? Conduct the appropriate test of hypothesis.

positive? Conduct the appropriate test of hypothesis.

e. What percentage of the variation in attendance is accounted for by salary?

e. What percentage of the variation in attendance is accounted for by salary?

f. Determine the correlation between attendance and team batting average and between

f. Determine the correlation between attendance and team batting average and between

attendance and team ERA. Which is stronger? Conduct an appropriate test of hypothesis

attendance and team ERA. Which is stronger? Conduct an appropriate test of hypothesis

for each set of variables.

for each set of variables.

between age of the bus and maintenance. The age of the bus is the independent

between age of the bus and maintenance. The age of the bus is the independent

variable.

variable.

a. Draw a scatter diagram. What does this diagram suggest as to the relationship between

a. Draw a scatter diagram. What does this diagram suggest as to the relationship between

the two variables? Is it direct or indirect? Does it appear to be strong or weak?

the two variables? Is it direct or indirect? Does it appear to be strong or weak?

b. Develop a regression equation. How much does an additional year add to the maintenance

b. Develop a regression equation. How much does an additional year add to the maintenance

cost. What is the estimated maintenance cost for a 10-year-old bus?

cost. What is the estimated maintenance cost for a 10-year-old bus?

c. Conduct a test of hypothesis to determine whether the slope of the regression line is

c. Conduct a test of hypothesis to determine whether the slope of the regression line is

greater than zero. Use the .05 significance level. Interpret your findings from parts (a),

greater than zero. Use the .05 significance level. Interpret your findings from parts (a),

(b), and (c) in a brief report.

(b), and (c) in a brief report.

35. Refer to the Buena School District bus data. First, add a variable to change the type of bus

35. Refer to the Buena School District bus data. First, add a variable to change the type of bus

(diesel or gasoline) to a qualitative variable. If the bus type is diesel, then set the qualitative

(diesel or gasoline) to a qualitative variable. If the bus type is diesel, then set the qualitative

variable to 0. If the bus type is gasoline, then set the qualitative variable to 1. Develop a

variable to 0. If the bus type is gasoline, then set the qualitative variable to 1. Develop a

regression equation using statistical software with maintenance as the dependent variable

regression equation using statistical software with maintenance as the dependent variable

and age, miles, and bus type as the independent variables.

and age, miles, and bus type as the independent variables.

a. Write out the multiple regression equation analysis. Discuss each of the variables.

a. Write out the multiple regression equation analysis. Discuss each of the variables.

b. Determine the value of *R*2. Interpret.

b. Determine the value of *R*2. Interpret.*R*

c. Develop a correlation matrix. Which independent variables have strong or weak correlations

c. Develop a correlation matrix. Which independent variables have strong or weak correlations

with the dependent variable? Do you see any problems with multicollinearity?

with the dependent variable? Do you see any problems with multicollinearity?

d. Conduct the global test on the set of independent variables. Interpret.

d. Conduct the global test on the set of independent variables. Interpret.

e. Conduct a test of hypothesis on each of the independent variables. Would you consider

e. Conduct a test of hypothesis on each of the independent variables. Would you consider

deleting any of the variables? If so, which ones?

deleting any of the variables? If so, which ones?

f. Rerun the analysis until only significant regression coefficients remain in the analysis.

f. Rerun the analysis until only significant regression coefficients remain in the analysis.

Identify these variables.

Identify these variables.

g. Develop a histogram or a stem-and-leaf display of the residuals from the final regression

g. Develop a histogram or a stem-and-leaf display of the residuals from the final regression

equation developed in part (f). Is it reasonable to conclude that the normality assumption

equation developed in part (f). Is it reasonable to conclude that the normality assumption

has been met?

has been met?

h. Plot the residuals against the fitted values from the final regression equation developed

h. Plot the residuals against the fitted values from the final regression equation developed

in part (f) against the fitted values of *Y. *Plot the residuals on the vertical axis and the fitted

in part (f) against the fitted values of *Y. *Plot the residuals on the vertical axis and the fitted*Y. *

values on the horizontal axis.

values on the horizontal axis.

A. The Century National Bank

A. The Century National Bank

Refer to the Century National Bank data. Using checking

Refer to the Century National Bank data. Using checking

account balance as the dependent variable and using as

account balance as the dependent variable and using as

independent variables the number of ATM transactions, the

independent variables the number of ATM transactions, the

number of other services used, whether the individual has a

number of other services used, whether the individual has a

debit card, and whether interest is paid on the particular account,

debit card, and whether interest is paid on the particular account,

write a report indicating which of the variables seem

write a report indicating which of the variables seem

related to the account balance and how well they explain

related to the account balance and how well they explain

the variation in account balances. Should all of the independent

the variation in account balances. Should all of the independent

variables proposed be used in the analysis or can

variables proposed be used in the analysis or can

some be dropped?

some be dropped?