Chap 3 Regression (Due Oct 6)

1. The operations manager of a musical instrument distributor feels that demand for bass drums may be
related to the number of television appearances by the popular rock group Green Shades during the
preceding month. The manager has collected the data shown in the following table:
Demand for Bass Drums
3
6
7
5
10
8
6

Green Shades TV Appearance

3
4
7
4
9
5
5

(a) Graph these data to see whether a linear equation might describe the relationship between the
groups television shows and bass drum sales.
(b) Using the equations presented in this chapter, compute the SST, SSE, and SSR. Find the least
squares regression line for these data.
(c) What is your estimate for bass drum sales if the Green Shades performed on TV six times last
month?

2. Students in a management science class have just received their grades on the first test. The instructor
has provided information about the first test grades in some previous classes as well as the final
average for the same students. Some of these grades have been sampled and are as follows:
Student
1 2 3 4 5 6 7 8 9
st
1 test grade 98 77 88 78 96 61 66 95 69
Final average 93 78 84 72 84 64 64 95 76

(a) Develop a regression model that could be used to predict the final average in the course based
on the first test grade.
(b) Predict the final average of a student who made an 83 on the first test.
(c) Give the values of r and r2 for this model. Interpret the value of r2 in the context of this
problem.

3. The following data give the selling price, square footage, number of bedrooms, and age of houses that
have sold in a neighborhood in the past 6 months.
(a) Develop three regression models to predict the selling price based upon each of the other
factors individually. Which of these is best?

SELLING PRICE($)

SQUARE FOOTAGE

BEDROOMS

AGE (YEARS)

64,000

1,670

30

59,000

1,339

25

61,500

1,712

30

72,000

1,840

42

87,500

2,300

18

92,500

2,234

30

95,000

2,311

19

113,000

2,377

115,000

2,736

10

138,000

2,500

142,500

2,500

144,000

2,479

145,000

2,400

147,500

3,124

144,000

2,500

155,500

4,062

10

165,000

2,854

(b) Use the data to develop a regression model to predict selling price based on the square
footage, number of bedrooms, and age. Use this to predict the selling price of a 10-year-old,
2,000-square-foot house with 3 bedrooms.
4. Explain how the null hypothesis can be rejected from the perspectives of F-statistic and p-value.
5. Now youve seen how regression can be used under different context, its your turn to design a linear
regression model of your interest to make some predictions. You need to specify what problem you are
trying to solve, what variables you need, how you plan to collect the data, and how your linear regression
model looks like. You do NOT need to really collect any data or run the regression. But just try to come
up with some idea that is related to your field or interests you.