Therefore, age does not effect the current sales number as any employee on staff with age as a non-factor is able to lead in the current sales figures.
4. The following is a regression model depicting the likelihood of buying a new car given total family income and the likelihood of buying tickets to a rock concert given age.
a.) Y^ = a^ + ss^X; Y^ = 3.5 + .7X, where Y^ = likelihood of buying a new car and X = total family income
b) Y^= a^ + ss^X; Y^= 3.5 - .4x, where Y^ = the likelihood of buying tickets to a rock concert and X = age.
The regression equation for a is a predictor of Y^ pronounced Y-hat suggests that for every unit increase in x, or family income, y increases by 4.2. So for every increase in total family income the likelihood of buying a new car increases by 4.2.
The regression equation for b is a predictor of Y^ and suggests that for every unit increase in x, or age, y increases by 3.9. For every unit increase in age, the likelihood of buying tickets to a rock concert increases by 3.9.
The ANOVA summary table is the result of a regression of sales on year of sales
Explained by regression 605, 370, 750 1-3.12 with the sum of squares, degrees of freedom, mean, and f-value shown respectively. Unexplained by the regression is 1,551,381,712 8 193,922, 714 and the total error is 9. The alpha value to test whether the relationship is statistically significant is alpha=.05 or 5% so the test is for 95% confidence or that the distribution is within 2?. Yes the test is significant at alpha .05 and does not need to test at alpha .01 however if one does not feel .05 is sufficient then testing at 3? is the next step.
6. A metropolitan economist attempts to predict the average total budget for retired couples in Phoenix based on the average of U.S. urban retired couples total budget. An r squared value of .7824 is the result of the analysis. This is to say that 78% of the data is explained by the dependant variable, or that 78% of the result is explained by the choice in dependant variable. A value above .8 would be a nice target but .78 is very close and therefore suggests that much of the data has been explained by using the mean of U.S. urban retired couples. The result would suggest that perhaps Phoenix may have to lower the predicted average of total budget required as the unexplained 21 and a fraction may imply...
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