Explore the data by commenting on the relationships in the three scatterplots you can produce by considering variables two at a time.
Networked computers tend to slow down when they are overloaded. The response time is how long it takes from when you press the Enter key until the computer comes back with your answer. Naturally, when the computer is busier (either with users or with other work), you would expect it to take longer. This response […]
Examine and interpret the regression coefficient for gender.
Now examine the effect of gender on annual salary, with and without adjusting for age and experience. a. Find the average annual salary for men and for women and compare them. b. Using a two-sided test at the 5% level, test whether men are paid significantly more than women. (You may wish to refer back […]
Find the regression equation to predict price from area and year
Table 12.5.1 shows data on Picasso paintings giving the price, area of canvas, and year for each one. a. Find the regression equation to predict price from area and year. b. Interpret the regression coefficient for area. c. Interpret the regression coefficient for year. d. What would you expect the sales price to be for […]
Examine a diagnostic plot to see if there is any further structure remaining that would help you explain profit based on price.
Setting prices is rarely an easy task. A low price usually results in higher sales, but there will be less profit per sale. A higher price produces higher profit per sale, but sales will be lower overall. Usually, a firm wants to choose the price that will maximize the total profit, but there is considerable […]