A data set given in Fortune , 4/17/2000 correlates the number of employees and revenue ( in millions of dollars) for 20 companies. The Excel regression output is given. We choose revenue as the explanatory variable.

Questions:

1. What is the estimated regression equation? ________________________(12pts)
2. Give a 95% confidence interval for the sample statistic b ₁ .
   _________________________________(4pts)
3. In regular decimal form what is the p-value of the global significance test?
   _______________________________(3pts)
4. In a complete sentence : What does the result of the global significance test mean? (5pts)
5. What is Pearson's coefficient of correlation? _______________(2pts)
6. What percent of the variability of number of employees is explained in this model by linear dependence on company revenue?
   ___________________(4pts)
7. What is the value of F _crit at the 0.05 level of significance? ____________(4pts)
8. One of the 20 companies is Chase Manhattan Bank, which had a total revenue of 33,710 million dollars ( i.e., $33,710,000,000) and a total workforce of 74,801. Given this total revenue,
   what number of employees does the model predict? Show work.
   _______________(6pts)
9. Suppose that a company had a total revenue of $20,000,000,000. What number of employees does the model predict? Show work.
   ___________(6pts)
10. The given value of \({{r}^{2}}\) indicates a relatively good fit of the estimated regression equation to the data. Thus in the range of revenue values represented in the sample -- 1,669 million to 37,120 million -- it may be useful to predict workforce size as a function of revenue. In light of this, answer the question in complete sentences: Interpret the coefficient b ₀ in the equation and address the issue of whether this makes sense. (4pts)/50

Price: $6.8

Solution: The downloadable solution consists of 3 pages, 380 words and 1 charts.
Deliverable: Word Document