Question

Read Chapter 4 in eText and view all resource material.

1. Simple linear regression looks at the relationship between an independent and a dependent variable. Give a real-world example of two variables that have this special relationship.

2. Complete the following assignment:

See attached Excel file that displays the relationship between the annual revenue in millions (x variable) and the current value in millions (y variable)
of 30 professional basketball teams.  
Press SCATTERPLOT tab on bottom ribbon to see the data points and trendline. Return to DATA tab on bottom ribbon.
Change values in CURRENT VALUE column D to any 3 digit values you choose.
Click SCATTERPLOT tab to see your datapoints and trendline.
To find linear regression equation, right click any data point, click ADD A TRENDLINE.
Scroll down to check boxes: DISPLAY EQUATION, DISPLAY R-SQUARED VALUE (This is the coeffiecient of determination.)
On your Excel sheet below your scatterplot, (1) identify and interpret the slope of your equation
(2) identify and interpret the y-intercept of your equation
(3) identify and interpret the R-Squared value: what does it tell you about this relationship
(4) Save your file and post it on this week's Discussion Board.

Team Name	Team Code	Revenue ($mil)	Current Value ($mil)
Atlanta Hawks	ATL	105	295
Boston Celtics	BOS	151	452
Charlotte Bobcats	CHA	98	281
Chicago Bulls	CHI	169	511
Cleveland Cavaliers	CLE	161	355
Dallas Mavericks	DAL	146	438
Denver Nuggets	DEN	113	316
Detroit Pistons	DET	147	360
Golden State Warriors	GSW	119	363
Houston Rockets	HOU	153	443
Indiana Pacers	IND	95	269
Los Angeles Clippers	LAC	102	305
Los Angeles Lakers	LAL	214	643
Memphis Grizzlies	MEM	92	266
Miami Heat	MIA	124	425
Milwaukee Bucks	MIL	92	258
Minnesota Timberwolves	MIN	95	264
New Jersey Nets	NJN	89	312
New Orleans Hornets	NOH	100	280
New York Knicks	NYK	226	655
Oklahoma City Thunder	OKC	118	329
Orlando Magic	ORL	108	385
Philadelphia 76ers	PHI	110	330
Phoenix Suns	PHX	147	411
Portland Trail Blazers	POR	127	356
Sacramento Kings	SAC	103	293
San Antonio Spurs	SAS	135	404
Toronto Raptors	TOR	138	399
Utah Jazz	UTA	121	343
Washington Wizards	WAS	107	322

Answer 1

(1) identify and interpret the slope of your equation

The slope is 2.768.

For every additional revenue, current value will increase by 2.768.
(2) identify and interpret the y-intercept of your equation

The y-intercept is 17.647.

When the additional revenue is constant, the current value will increase by 17.647, on average.
(3) identify and interpret the R-Squared value: what does it tell you about this relationship

R-Squared = 0.889

88.9% of the variability in the current value is explained by the additional revenue.
(4) Save your file and post it on this week's Discussion Board.

The scatterplot is:

answered by: anonymous