Business Forecasting 16 26.8 \"Dun and Bradstreet. employee in thousands of doll
ID: 3181599 • Letter: B
Question
Business Forecasting 16 26.8 "Dun and Bradstreet. employee in thousands of dollars.A portion of the Minitab output from a straight- line regression analysis is given below. The regression equation is Profits 18.0 0.271 Employees Predictor Coef SE Coef Constant 17.954 4.457 4.03 0.001 Employees -0.2715 0.1726 -1.57 0.138 10.6112 R Sq 15.0% R sq(adj) 9.0% CHAPTER 6 Simple Linear Regression 265 a. Identify the least squares estimates of the slope and intercept coefficients. b. Test the hypothesis Ho B 0 with a 10. Does there appear to be a rela tionship between profits pcr ployee and number of employees? Explain cm c. Identify and interpret r d. Is this fitted regression function likely to be a good tool for forecasting profits per employee for a given number of publishing firm employees? Discuss 20. Refer to Problem 19. Observation 12 corresponds to Dun and Bradstreet. Redo the straight-line regression analysis omitting this observation. Do your conclusions in parts b and d of Problem 19 change? What if anything.does this imply about the influence of a single observation on a regression analysis when the number of observations is fairly small Do you think it is reasonable to throw out Dun and Bradstreet? Discuss MacBook AirExplanation / Answer
a) The regression equation is Profits = 18 - 0.271 Employee
Slope = -0.271 intercept = 18
b) From the output, P-value = 0.138 of Employee coefficient, which is greater than alpha = 0.10. So We accept H0
Thus, we conclude that there is no relation between Number of employes and profts.
c) r2 = 0.15 = 15% of the variations in the variable profit is explained by the independent variable - Emplyees.
d) r2 = 0.15 = 15% which is low percentage and Standard Error = 10.6112 which is high.
So, The regression equation is not fit to the given data
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