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Example of regression analysis

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This is the exact same question as I previously submitted; I believe I did not submit correct data for the question. (Random Sample of probationers data) I also attached previous work in case you need data. Thank you

5. You hypothesize that in a random sample of probationers, there is a relationship between a probationer's Grasmick Self Control Scale Score (SELF_CON)and the Highest Grade (EDUC) he completed. Remember that the low scores on the Grasmick Scale are associated with low self control.
a. You do not have to test the hypothesis, but you need to calculate a and b and write out the regression equation
b. Calculate the SSE
c. Calculate the PRE measure r2, interpret
d. What Education level (Highest Grade Completed) would you predict for a person with a Grasmick Score of 40?

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a. You do not have to test the hypothesis, but you need to calculate a and b and write out the regression equation
From excel output, a(intercept)=13.046 and ...

Solution Summary

The solution gives detailed steps on performing a simple regression analysis. All formula and calculations are shown and explained.

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Random Sample

A recent article in Buisness Week listed the best small companies. We are interested in the current results of the companies sales and earnings. A random sample of 12 companies was selected and the sales and earnings, in millions of dollars, are reported below.

Company Sales Earnings
($ millions) ($ earnings)

Papa John's International 89.2 4.9

Applied Innovation 18.6 4.4

Integracare 18.2 1.3

Wall Data 71.7 8.0

Davidson Associates 58.6 6.6

Chico's Fas 46.8 4.1

Company Sales Earnings
($ millions) ($ millions)

Checkmate Electronics 17.5 2.6

Royal Grip 11.9 1.7

M-Wave 19.6 3.5

Serving-N-Slide 51.2 8.2

Daig 28.6 6.0

Cobra Golf 69.2 12.8

Let sales be the independent variable and earnings be the dependent variable.

A. Draw a scatter diagragm.

B. Compute the co-efficient of correlation.

C. Compute the co-efficient of determination.

D. Interpret your findings in part B and C.

E. Determine the regression equation.

F. for a small company with 50.0 million in sales, estimate the earnings.

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