For 26 companies operating in several technology industries, the accompanying data gives the expenses on research and development (R&D) and the total assets of the companies. Both values are reported in millions of dollars. Complete parts a throu below. E Click the icon view the data table. (a) Scatterplot R&D Expense on Assets. Does a line seem to you to be a good summary of the relationship between these two variables? Construct the scatterplot. Choose the correct graph below. OA. OB. OC. OD. Q 1,000 8 10,000 1,000 8 10,000 10.000 Assets (S000,000) 1,000 Assets (S000,000) 10,000 Assets (S000,000) 1,00 Assets (S000,000) Does a line seem to you to be a good summary of the association between these variables? O A. Yes, because the scatterplot does not show any obvious pattern. O B. Yes, because the scatterplot shows an approximate linear pattern, assuming that the two outliers are acceptable. OC. No, because the scatterplot shows an obvious curved line. OD. No, because the scatterplot does not show any obvious pattern. (b) Estimate the least squares linear equation for R&D Expense on Assets. Interpret the fitted intercept and slope. Be sure to include their units. Note if either estimate represents a large extrapolation and is consequently not reliable. Complete the equation for the fitted line below. Estimated R&D Expense ($000,000) = 0.101 + 3.703 Assets ($000,000) (Round to three decimal planes as needed )
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
![- х
i
Data Table
ets
he
Full data set O
Assets
R&D Expense
R&D Expense
712.087
Assets
3,478.557
3,462.224
1,206.455
345.709
7,785.525
389.959
918.899
90.404
117.895
2,390.016
257.571
446.339
47.523
678.531
71.401
1,069.117
2,465.859
3,945.287
168.631
111.724
2,648.273
3,406.446
9,250.323
292.876
224.715
383.186
nt
410.051
988.349
19.257
485.204
55.161
493.116
55.046
2,363.477
251.699
0)
102.148
13.489
221.321
27.958
3,728.419
1,389.377
1,706.486
327.691
1,465.861
158.293
141.616
165.093
19.154
161.317
2,988.141
301.803
nat
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![For 26 companies operating in several technology industries, the accompanying data gives the expenses on research and development (R&D) and the total assets of the companies. Both values are reported in millions of dollars. Complete parts a through e
below.
Click the icon to view the data table.
(a) Scatterplot R&D Expense on Assets. Does a line seem to you to be a good summary of the relationship between these two variables?
Construct the scatterplot. Choose the correct graph below.
А.
D.
1,000-
10,000-
1,000-
10,000-
0-
10,000
Assets ($000,000)
1,000
Assets ($000,000)
10,000
Assets ($000,000)
1,000
Assets ($000,000)
Does a line seem to you to be a good summary of the association between these variables?
O A. Yes, because the scatterplot does not show any obvious pattern.
O B. Yes, because the scatterplot shows an approximate linear pattern, assuming that the two outliers are acceptable.
OC. No, because the scatterplot shows an obvious curved line.
O D. No, because the scatterplot does not show any obvious pattern.
(b) Estimate the least squares linear equation for R&D Expense on Assets. Interpret the fitted intercept and slope. Be sure to include their units. Note if either estimate represents a large extrapolation and is consequently not reliable.
Complete the equation for the fitted line below.
Estimated R&D Expense ($000,000) = |0.101 + 3.703 Assets ($000,000)
(Round to three decimal places as needed.)
B.
(000'000$) a8
(000'000$) a8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F752ed300-1989-4759-8700-fdba4e5b0ee0%2F95298159-8008-469c-affb-eec7fcc0a9c4%2Fc683ttp_processed.png&w=3840&q=75)
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