stats 502

WEEK 3

Below you find two data sets.

1. Combine the two files into one excel file with two sheets.  Each data set will be on its own sheet.

   • The first data set comes from Chapter 14 question 19 and the second data set is associated with question 54 in the same chapter.

2. For each problem develop a scatter plot.  For Question 19 we want to understand if there is a relationship between years of experience and sales.  Sales is Why we are doing to regression.  For Question 54 we want to know if annual revenue in baseball is related to the value of the team.  Value is why we are doing this.

3. Once you create your scatter plot add the regression equation and R-squared.

4. Do a regression analysis using the Excel Data Analysis tool.

5. Highlight the "important" numbers:  R-squared value, F-test number, Coefficients.

6. Create the regression equation.

7. For Years of experience tell me what sales should be if years of experience is 10 years.

8. For Value tell me what a team would be worth is revenue was $250 million.

9. Write a more than 100 word interpretation of what we have learned for each of the regression models.