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CHAPTER 13 Simple Linear Regression

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560 <strong>CHAPTER</strong> THIRTEEN <strong>Simple</strong> <strong>Linear</strong> <strong>Regression</strong><br />

<strong>13</strong>.81 Crazy Dave, a well-known baseball analyst, would<br />

like to study various team statistics for the 2005 baseball<br />

season to determine which variables might be useful in predicting<br />

the number of wins achieved by teams during the<br />

season. He has decided to begin by using a team’s earned<br />

run average (ERA), a measure of pitching performance, to<br />

predict the number of wins. The data for the 30 Major<br />

League Baseball teams are in the file bb2005.xls.<br />

(Hint: First, determine which are the independent and<br />

dependent variables.)<br />

a. Assuming a linear relationship, use the least-squares<br />

method to compute the regression coefficients b 0<br />

and b 1<br />

.<br />

b. Interpret the meaning of the Y intercept, b 0<br />

, and the<br />

slope, b 1<br />

, in this problem.<br />

c. Use the prediction line developed in (a) to predict the<br />

number of wins for a team with an ERA of 4.50.<br />

d. Compute the coefficient of determination, r 2 , and interpret<br />

its meaning.<br />

e. Perform a residual analysis on your results and determine<br />

the adequacy of the fit of the model.<br />

f. At the 0.05 level of significance, is there evidence of a<br />

linear relationship between the number of wins and<br />

the ERA?<br />

g. Construct a 95% confidence interval estimate of the<br />

mean number of wins expected for teams with an ERA<br />

of 4.50.<br />

h. Construct a 95% prediction interval of the number of<br />

wins for an individual team that has an ERA of 4.50.<br />

i. Construct a 95% confidence interval estimate of the<br />

slope.<br />

j. The 30 teams constitute a population. In order to use statistical<br />

inference, as in (f) through (i), the data must be<br />

assumed to represent a random sample. What “population”<br />

would this sample be drawing conclusions about?<br />

k. What other independent variables might you consider<br />

for inclusion in the model?<br />

<strong>13</strong>.82 College football players trying out for the NFL are<br />

given the Wonderlic standardized intelligence test. The data<br />

in the file wonderlic.xls contains the average Wonderlic<br />

scores of football players trying out for the NFL and the<br />

graduation rates for football players at selected schools<br />

(extracted from S. Walker, “The NFL’s Smartest Team,” The<br />

Wall Street Journal, September 30, 2005, pp. W1, W10).<br />

You plan to develop a regression model to predict the<br />

Wonderlic scores for football players trying out for the<br />

NFL, based on the graduation rate of the school they<br />

attended.<br />

a. Assuming a linear relationship, use the least-squares<br />

method to compute the regression coefficients b 0<br />

and b 1<br />

.<br />

b. Interpret the meaning of the Y intercept, b 0<br />

, and the<br />

slope, b 1<br />

, in this problem.<br />

c. Use the prediction line developed in (a) to predict the<br />

Wonderlic score for football players trying out for the<br />

NFL from a school that has a graduation rate of 50%.<br />

d. Compute the coefficient of determination, r 2 , and interpret<br />

its meaning.<br />

e. Perform a residual analysis on your results and determine<br />

the adequacy of the fit of the model.<br />

f. At the 0.05 level of significance, is there evidence of a<br />

linear relationship between the Wonderlic score for a<br />

football player trying out for the NFL from a school and<br />

the school’s graduation rate?<br />

g. Construct a 95% confidence interval estimate of the<br />

mean Wonderlic score for football players trying out for<br />

the NFL from a school that has a graduation rate of 50%.<br />

h. Construct a 95% prediction interval of the Wonderlic<br />

score for a football player trying out for the NFL from a<br />

school that has a graduation rate of 50%.<br />

i. Construct a 95% confidence interval estimate of the<br />

slope.<br />

<strong>13</strong>.83 College basketball is big business, with coaches’<br />

salaries, revenues, and expenses in millions of dollars.<br />

The data in the file colleges-basketball.xls contains the<br />

coaches’ salaries and revenues for college basketball<br />

at selected schools in a recent year (extracted from<br />

R. Adams, “Pay for Playoffs,” The Wall Street Journal,<br />

March 11–12, 2006, pp. P1, P8). You plan to develop a<br />

regression model to predict a coach’s salary based on<br />

revenue.<br />

a. Assuming a linear relationship, use the least-squares<br />

method to compute the regression coefficients b 0<br />

and b 1<br />

.<br />

b. Interpret the meaning of the Y intercept, b 0<br />

, and the<br />

slope, b 1<br />

, in this problem.<br />

c. Use the prediction line developed in (a) to predict<br />

the coach’s salary for a school that has revenue of<br />

$7 million.<br />

d. Compute the coefficient of determination, r 2 , and interpret<br />

its meaning.<br />

e. Perform a residual analysis on your results and determine<br />

the adequacy of the fit of the model.<br />

f. At the 0.05 level of significance, is there evidence of a<br />

linear relationship between the coach’s salary for a<br />

school and revenue?<br />

g. Construct a 95% confidence interval estimate of the<br />

mean salary of coaches at schools that have revenue of<br />

$7 million.<br />

h. Construct a 95% prediction interval of the coach’s salary<br />

for a school that has revenue of $7 million.<br />

i. Construct a 95% confidence interval estimate of the<br />

slope.<br />

<strong>13</strong>.84 During the fall harvest season in the United States,<br />

pumpkins are sold in large quantities at farm stands. Often,<br />

instead of weighing the pumpkins prior to sale, the farm<br />

stand operator will just place the pumpkin in the appropriate<br />

circular cutout on the counter. When asked why this<br />

was done, one farmer replied, “I can tell the weight of the<br />

pumpkin from its circumference.” To determine whether<br />

this was really true, a sample of 23 pumpkins were mea-

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