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Data Set 4.1 (Solutions)

The document summarizes two studies examining the relationship between explanatory and response variables: 1) A study of companies found a strong positive correlation (0.8002) between number of employees and revenue, with 64.03% of revenue variability explained by employees. The least squares line estimated $3.7 billion in revenue for a company with 30,000 employees. 2) A study of students found a moderate negative correlation (-0.6649) between hours worked at a paid job and semester average, with 44.21% of grade variability explained by hours worked. The least squares line estimated a semester average of 61.43% for a student working 200 hours.

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Nicha MH
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32 views9 pages

Data Set 4.1 (Solutions)

The document summarizes two studies examining the relationship between explanatory and response variables: 1) A study of companies found a strong positive correlation (0.8002) between number of employees and revenue, with 64.03% of revenue variability explained by employees. The least squares line estimated $3.7 billion in revenue for a company with 30,000 employees. 2) A study of students found a moderate negative correlation (-0.6649) between hours worked at a paid job and semester average, with 44.21% of grade variability explained by hours worked. The least squares line estimated a semester average of 61.43% for a student working 200 hours.

Uploaded by

Nicha MH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A researcher collected data (contained in the DATA 1 tab) about total revenue and tota

number of employees for a random sample of companies. The question that interests
researcher is if companies with more employees have larger revenues.
What is the EXPLANATORY variable? Number of Employees
What is the RESPONSE variable? Revenue
Construct a scatter diagram on the DATA 1 tab (with axes properly labeled)
Calculate the PEARSON CORRELATION COEFFICIENT 0.8002
Interpret the PEARSON CORRELATION COEFFICIENT. There is a STRONG, POSITIVE lin
relationship

Determine the equation of the LEAST-SQUARES line. y-hat = 0.0538x + 2.1044


Interpret the LEAST-SQUARES line. Each additional 1,000 employees results in an in
of 0.0538 billion dollars in revenue

Determine the coefficient of determination. r2 = 0.6403


Interpret the coefficient of determination. 64.03% of the variablity in revenue can
explained by the number of employees

Estimate the revenue for a company with 30,000 employees. $3,718,400,000


t total revenue and total
question that interests the
venues.

erly labeled)

a STRONG, POSITIVE linear


ship

0.0538x + 2.1044
mployees results in an increase
n revenue

riablity in revenue can be


number of employees

$3,718,400,000
A statistics professor wants to know if the number of hours a students works at a paid
good indicator of their semester average. The results of a random sample of students
contained in the DATA 2 tab.
What is the EXPLANATORY variable? Hours at a paid job
What is the RESPONSE variable? Semester average
Construct a scatter diagram on the DATA 2 tab (with axes properly labeled)
Calculate the PEARSON CORRELATION COEFFICIENT -0.6649
Interpret the PEARSON CORRELATION COEFFICIENT. There is a MODERATE, NEGATIV
relationship

Determine the equation of the LEAST-SQUARES line. y-hat = -0.1527x + 91.969


Interpret the LEAST-SQUARES line. Each additional hour of work at a paid job result
decrease of 0.1527% in the semester average

Determine the coefficient of determination. r2 = 0.4421


Interpret the coefficient of determination. 44.21% of the variablity in the final grad
explained by test #2

Estimate the average mark for student who works 200 hours. 61.43
udents works at a paid job is a
m sample of students are

rly labeled)

a MODERATE, NEGATIVE linear


ship

0.1527x + 91.969
work at a paid job results in a
he semester average

riablity in the final grade can be


#2

61.43
Number of
Employees Revenue (in
(in thousands) billions)
12.4 2.18
32.3 4.15 Number of Employees vs. Revenue
33.5 4.06
5
37.9 3.54 4.5
31.6 4.51 4 f(x) = 0.0538248401493255 x + 2.10437731053974
38.2 3.9 3.5

Revenue (billions)
R² = 0.640336122410349
11.5 2.98 3
2.5
28 3.82 2
38.7 4.06 1.5
21.2 3.2 1
0.5
0
10 15 20 25 30 35 40 45
Number of Employees (thousands)
. Revenue

731053974

35 40 45
usands)
Student Total hours Semester
at paid job average
during mark
semester
1 108 79
2 117 89 Hours at Job vs. Semester Average
3 227 42
100
4 256 65 90
5 203 52 80

Semester Average (%)


f(x) = − 0.152665443789159 x + 91.9691672114993
6 266 50 70 R² = 0.442096909117994
7 179 58 60
50
8 122 67 40
9 217 64 30
10 198 65 20
11 154 92 10
0
12 286 64 0 50 100 150 200 250 300 350 4
13 96 77
Total Hours at Paid Job (Hrs)
14 204 50
15 241 50
16 251 72
17 259 53
18 260 44
19 195 52
20 217 52
21 149 78
22 53 86
23 226 84
24 167 58
25 308 50
26 113 89
27 232 87
28 188 47
29 213 40
30 220 51
31 64 83
32 263 44
33 181 50
34 220 45
35 207 72
36 378 22
37 266 50
38 302 43
39 178 67
40 356 42
41 227 28
42 72 77
43 345 58
44 185 62
45 215 56
r Average

91.9691672114993

50 300 350 400


Hrs)

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