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Since you have done such a great job on your first government project, they again have asked for you

Question: Since you have done such a great job on your first government project, they again have asked for your assistance in predicting how many oil contractors will bid for oil leases on government land. Based on a gut feel, the Director of the Bureau believes the number of potential bidders can be predicted by five variables: the Class of oil found, the Miles from the oil field to the nearest distribution point, the Output potential of the well, the Geologist report, and the Size of the oil field. The director provides you with the last 30 leasing bids.

Bidders	Class	Miles	output	Geologist	Size
300	1	8.0	5000	0.40	3.5
375	1	3.2	5000	0.40	4.0
200	1	8.0	4500	0.15	10.2
531	1	0.8	6500	0.50	1.3
115	1	12.0	3600	0.08	5.6
629	1	1.6	7800	0.65	2.9
152	1	5.9	4200	0.05	6.5
131	1	11.8	3600	0.05	9.8
192	1	4.0	2600	0.20	6.3
427	1	2.6	7800	0.35	10.1
93	2	25.0	7100	0.20	3.8
120	2	36.0	1500	0.25	4.2
46	2	17.8	3500	0.15	2.1
38	2	49.6	3800	0.15	1.6
29	2	48.3	5100	0.15	0.8
77	2	18.5	4200	0.20	2.8
102	2	17.1	5300	0.33	3.5
82	2	16.5	3100	0.25	3.0
53	2	26.1	4100	0.18	3.0
48	2	18.1	3400	0.15	2.3
10	3	135.1	3600	0.02	4.6
21	3	151.5	4500	0.04	10.1
16	3	80.5	3200	0.03	8.6
35	3	52.1	3900	0.05	16.1
40	3	51.6	4100	0.04	21.7
12	3	1 24.1	3600	0.01	2.2
15	3	1 03.1	4700	0.01	3.2
11	3	1 76.1	4300	0.02	2.0
19	3	1 42.6	3600	0.02	3.6
37	3	8 1.5	3100	0.04	4.2

The first column, Bidders, is what you are trying to predict based on the other five variables. The Director believes that the relationship between the five variables and the number of bidders is linear. Thinking back to your graduate school days and the QSO510 class, you know that you can solve this using a multiple regression technique. To solve this please answer the questions below. I suggest you use Excel to run the regression. Make sure to paste your Excel results in this document. Assume α=0.05 for this problem.

a) Is there a linear relationship between Bidders and any of the five variables? How do you know? (5 Points)

b) What variables are significantly related to the number of Bidders? How do you know? (5 Points)

c) What is the prediction formula for number of bidders? (5 Points)

d) Your next oil lease is a Class 2, 100 Miles from the nearest distribution center, potential Output of 6,000, Geologist report of 0.5, and 10 square miles in Size. How many bidders do you expect to attend the bid? (5 Points)

Price: $2.99

Solution: The downloadable solution consists of 4 pages
Solution Format: Word Document