Loose Leaf for Statistical Techniques in Business and Economics
17th Edition
ISBN: 9781260152647
Author: Douglas A. Lind
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 13, Problem 50CE
Mr. William Profit is studying companies going public for the first time. He is particularly interested in the relationship between the size of the offering and the price per share. A sample of 15 companies that recently went public revealed the following information.
- a. Determine the regression equation.
- b. Conduct a test to determine whether the slope of the regression line is positive.
- c. Determine the coefficient of determination. Do you think Mr. Profit should be satisfied with using the size of the offering as the independent variable?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Mr. James McWhinney, president of Daniel-James Financial Services, believesthere is a relationship between the number of client contacts and the dollar amountof sales. To document this assertion, Mr. McWhinney gathered the following sampleinformation. The x column indicates the number of client contacts last month andthe y column shows the value of sales ($ thousands) last month for each clientsampled
a. Determine the regression equation.b. Determine the estimated sales if 40 contacts are made
A sales manager collected the following data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersons. Click on the datafile logo to reference the data.
a. Choose the correct scatter diagram for these data with years of experience as the independent variable. B
(NEED ANSWERS FOR B and C)
b. Develop an estimated regression equation that can be used to predict annual sales given the years of experience.
c. Use the estimated regression equation to predict annual sales for a salesperson with 9 years of experience (to the nearest whole number).
The county assessor is studying housing demand and is interested in developing a regression model to estimate the market value (i.e., selling price) of
residential property within her jurisdiction. The assessor suspects that the most important variable affecting selling price (measured in thousands of
dollars) is the size of house (measured in hundreds of square feet). She randomly selects 15 houses and measures both the selling price and size, as
shown in the following table.
Complete the table and then use it to determine the estimated regression line.
Observation
i
1
2
3
4
5
6
7
8
9
10
i
11
12
13
14
15
Total
O 8.074
Regression Parameters
Slope (B)
Intercept (α)
10.181
8.358
O 0.327
Size
(x 100 sq. ft.)
O 0.316
12
20.2
27
O 0.398
30
30
O Yes
21.4
21.6
25.2
37.2
14.4
15
22.4
23.9
26.6
30.7
357.60
O No
What is the standard error of the estimate (Se)?
In words, for each hundred square feet, the expected selling price of a house
Selling Price
(x $1,000)
Ii
Yi
y
265.2 253.4
12
2 20.2…
Chapter 13 Solutions
Loose Leaf for Statistical Techniques in Business and Economics
Ch. 13 - Prob. 1SRCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Bi-lo Appliance Super-Store has outlets in several...Ch. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - The owner of Maumee Ford-Volvo wants to study the...Ch. 13 - Prob. 2SRCh. 13 - Prob. 7ECh. 13 - Prob. 8E
Ch. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 3SRCh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Prob. 19ECh. 13 - Prob. 20ECh. 13 - Prob. 4SRCh. 13 - Prob. 21ECh. 13 - Prob. 22ECh. 13 - Prob. 23ECh. 13 - Prob. 24ECh. 13 - Prob. 5SRCh. 13 - Prob. 25ECh. 13 - Prob. 26ECh. 13 - Prob. 27ECh. 13 - Prob. 28ECh. 13 - Prob. 29ECh. 13 - Prob. 30ECh. 13 - Prob. 6SRCh. 13 - Prob. 31ECh. 13 - Prob. 32ECh. 13 - Prob. 33ECh. 13 - Refer to Exercise 16. a. Determine the .95...Ch. 13 - Prob. 35ECh. 13 - Prob. 36ECh. 13 - A regional commuter airline selected a random...Ch. 13 - Prob. 38CECh. 13 - Prob. 39CECh. 13 - Prob. 40CECh. 13 - Prob. 41CECh. 13 - Prob. 42CECh. 13 - Prob. 43CECh. 13 - Prob. 44CECh. 13 - The manufacturer of Cardio Glide exercise...Ch. 13 - Prob. 46CECh. 13 - Prob. 47CECh. 13 - Prob. 48CECh. 13 - Prob. 49CECh. 13 - Mr. William Profit is studying companies going...Ch. 13 - Prob. 51CECh. 13 - Prob. 52CECh. 13 - Prob. 53CECh. 13 - Prob. 54CECh. 13 - A regression analysis relating the current market...Ch. 13 - Prob. 56CECh. 13 - Prob. 57CECh. 13 - A consumer buying cooperative tested the effective...Ch. 13 - Prob. 59CECh. 13 - Prob. 60CECh. 13 - TravelAir.com samples domestic airline flights to...Ch. 13 - The North Valley Real Estate data reports...Ch. 13 - Prob. 64DA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Find the equation of the regression line for the following data set. x 1 2 3 y 0 3 4arrow_forwardLife Expectancy The following table shows the average life expectancy, in years, of a child born in the given year42 Life expectancy 2005 77.6 2007 78.1 2009 78.5 2011 78.7 2013 78.8 a. Find the equation of the regression line, and explain the meaning of its slope. b. Plot the data points and the regression line. c. Explain in practical terms the meaning of the slope of the regression line. d. Based on the trend of the regression line, what do you predict as the life expectancy of a child born in 2019? e. Based on the trend of the regression line, what do you predict as the life expectancy of a child born in 1580?2300arrow_forwardXYZ Corporation Stock Prices The following table shows the average stock price, in dollars, of XYZ Corporation in the given month. Month Stock price January 2011 43.71 February 2011 44.22 March 2011 44.44 April 2011 45.17 May 2011 45.97 a. Find the equation of the regression line. Round the regression coefficients to three decimal places. b. Plot the data points and the regression line. c. Explain in practical terms the meaning of the slope of the regression line. d. Based on the trend of the regression line, what do you predict the stock price to be in January 2012? January 2013?arrow_forward
- For the following exercises, consider the data in Table 5, which shows the percent of unemployed in a city ofpeople25 years or older who are college graduates is given below, by year. 41. Based on the set of data given in Table 7, calculatethe regression line using a calculator or othertechnology tool, and determine the correlationcoefficient to three decimal places.arrow_forwardFor the following exercises, use Table 4 which shows the percent of unemployed persons 25 years or older who are college graduates in a particular city, by year. Based on the set of data given in Table 5, calculate the regression line using a calculator or other technology tool, and determine the correlation coefficient. Round to three decimal places of accuracyarrow_forwardDemand for Candy Bars In this problem you will determine a linear demand equation that describes the demand for candy bars in your class. Survey your classmates to determine what price they would be willing to pay for a candy bar. Your survey form might look like the sample to the left. a Make a table of the number of respondents who answered yes at each price level. b Make a scatter plot of your data. c Find and graph the regression line y=mp+b, which gives the number of respondents y who would buy a candy bar if the price were p cents. This is the demand equation. Why is the slope m negative? d What is the p-intercept of the demand equation? What does this intercept tell you about pricing candy bars? Would you buy a candy bar from the vending machine in the hallway if the price is as indicated. Price Yes or No 50 75 1.00 1.25 1.50 1.75 2.00arrow_forward
- For the following exercises, consider the data in Table 5, which shows the percent of unemployed ina city of people 25 years or older who are college graduates is given below, by year. 40. Based on the set of data given in Table 6, calculate the regression line using a calculator or other technology tool, and determine the correlation coefficient to three decimal places.arrow_forwardOlympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s pole vault height has fallen below the value predicted by the regression line in Example 2. This might have occurred because when the pole vault was a new event there was much room for improvement in vaulters’ performances, whereas now even the best training can produce only incremental advances. Let’s see whether concentrating on more recent results gives a better predictor of future records. (a) Use the data in Table 2 (page 176) to complete the table of winning pole vault heights shown in the margin. (Note that we are using x=0 to correspond to the year 1972, where this restricted data set begins.) (b) Find the regression line for the data in part ‚(a). (c) Plot the data and the regression line on the same axes. Does the regression line seem to provide a good model for the data? (d) What does the regression line predict as the winning pole vault height for the 2012 Olympics? Compare this predicted value to the actual 2012 winning height of 5.97 m, as described on page 177. Has this new regression line provided a better prediction than the line in Example 2?arrow_forwardBased on the firm's data and the regression line, complete the following. A. For these data, values for campaign cost that are less than the mean of the values for campaign cost tend to be paired with values for percentage increase in sales that are (greater than) or (less than) the mean of the values for percentage increase in sales. B. According to the regression equation, for an increase of one million dollars in advertising campaign cost, there is a corresponding increase of how many percent in sales?arrow_forward
- A. Write the equation of the regression line. B. Interpret the slope in this context, and calculate the predicted birth weight of first borns and others C. Is there a statistically significant relationship between the average birth weight and parity? Provide an explanation with numeric support.arrow_forwardThe county assessor is studying housing demand and is interested in developing a regression model to estimate the market value (i.e., selling price) of residential property within his jurisdiction. The assessor suspects that the most important variable affecting selling price (measured in thousands of dollars) is the size of house (measured in hundreds of square feet). He randomly selects 15 houses and measures both the selling price and size, as shown in the following table. Complete the table and then use it to determine the estimated regression line. Observation Size Selling Price (x 100 sq. ft.) (x $1,000) ii xixi yiyi xixiyiyi xi2xi2 yi2yi2 1 12 265.2 3,182.40 144.00 70,331.04 2 20.2 279.6 5,647.92 408.04 78,176.16 3 27 311.2 8,402.40 729.00 96,845.44 4 30 328.0 9,840.00 900.00 107,584.00 5 30 352.0 10,560.00 900.00 123,904.00 6 21.4 281.2 6,017.68 457.96 79,073.44 7 21.6 288.4 6,229.44 466.56 83,174.56 8 25.2 292.8 7,378.56 635.04…arrow_forwardIn this section, we introduced a descriptive measure of the utility of the regression equation for making predictions. a. Identify the term and symbol for that descriptive measure. b. Provide an interpretation.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning
College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Functions and Change: A Modeling Approach to Coll...
Algebra
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Cengage Learning
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY