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Tutorial 8 Sem 2 2020-21

This document contains 3 problems related to simple linear regression analysis. Problem 1 involves collecting annual sales and experience data from 10 salespersons to develop a scatter plot and regression equation to predict sales. Problem 2 computes regression statistics like r-squared using the regression equation from Problem 1. Problem 3 analyzes the relationship between megapixels and price for 10 digital cameras to develop a regression equation and make a prediction.

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208 views2 pages

Tutorial 8 Sem 2 2020-21

This document contains 3 problems related to simple linear regression analysis. Problem 1 involves collecting annual sales and experience data from 10 salespersons to develop a scatter plot and regression equation to predict sales. Problem 2 computes regression statistics like r-squared using the regression equation from Problem 1. Problem 3 analyzes the relationship between megapixels and price for 10 digital cameras to develop a regression equation and make a prediction.

Uploaded by

nki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

ECN3122 Sem 1 2015/16

Tutorial 8: Simple Linear Regression

1) A sales manage collected the following on annual sales for new customer accounts and the
number of years of experience for a sample of 10 salespersons.

Salesperson Years of Experience Annual Sales (RM1000s)


1 1 80
2 3 97
3 4 92
4 4 102
5 6 103
6 8 111
7 10 119
8 10 123
9 11 117
10 13 136

a. Develop a scatter diagram for these data with years of experience as the independent
variable.
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.

2) Refer to problem (1). The estimated regression equation for the data is ^y =80+4 x .

a. Compute SST, SSR, and SSE.


b. Compute the coefficient of determination r2. Comment on the goodness of fit.
c. What is the value of the sample correlation coefficient?

3) The number of megapixels in a digital camera is one of the most important factors in
determining picture quality. But, do digital cameras with more megapixels cost more? The
following data show the number of megapixels and the price (RM) for 10 digital cameras.

Camera Model Megapixels Price (RM)


1 8 180
2 10 200
3 7 230
4 8 120
5 15 470
6 8 140
7 10 180
8 12 310
9 10 250
10 7 110

a. Use the data to develop an estimated regression equation that can be used to
predict the price of a digital camera given the number of megapixels.
b. At the 0.05 level of significance, are the number of megapixels and the price
related? Explain.
c. Would you feel comfortable using the estimated regression equation developed in
part (a) to predict the price of a digital camera given the number of megapixels?
Explain.
d. Camera 11 has 10 megapixels. Predict the price of this camera using the estimated
regression equation developed in part (a).

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