Purchase Solution

Scatter Diagram for "Best Small Companies" Sales and Earnings

Not what you're looking for?

Ask Custom Question

A recent article in Business 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.

Sales Earnings Sales Earnings
Company ($ millions) ($ millions) Company ($ millions) ($millions)
Papa John's International $89.2 $4.9 Checkmate Electronics $17.5 $ 2.6

Applied Innovation 18.6 4.4 Royal Grip 11.9 1.7

Integracare 18.2 1.3 M-Wave 19.6 3.5

Wall Data 71.7 8.0 Serving-N-Slide 51.2 8.2

Davidson Associates 58.6 6.6 Daig 28.6 6.0

Chico's Fas 46.8 4.1 Cobra Golf 69.2 12.8

Let sales be the independent variable and earnings be the dependent variable. Each question must be answered in its entirety.

a. Draw a scatter diagram.
b. Compute the coefficient of correlation.
c. Compute the coefficient of determination.
d. Interpret your findings in parts b and c.
e. Determine the regression equation.
f. For a small company with $50.0 million in sales, estimate the earnings

Purchase this Solution
Solution Summary

This solution draws out the scatter diagram for the question and then determines the coefficient of correlation and coefficient of determination. It also estimates the earnings for a small company. This solution is provided in both a Word file and an Excel file.

Solution provided by:
Changping Wang, MA
Education
  • BSc , Wuhan Univ. China
  • MA, Shandong Univ.
Recent Feedback
  • "Your solution, looks excellent. I recognize things from previous chapters. I have seen the standard deviation formula you used to get 5.154. I do understand the Central Limit Theorem needs the sample size (n) to be greater than 30, we have 100. I do understand the sample mean(s) of the population will follow a normal distribution, and that CLT states the sample mean of population is the population (mean), we have 143.74. But when and WHY do we use the standard deviation formula where you got 5.154. WHEN & Why use standard deviation of the sample mean. I don't understand, why don't we simply use the "100" I understand that standard deviation is the square root of variance. I do understand that the variance is the square of the differences of each sample data value minus the mean. But somehow, why not use 100, why use standard deviation of sample mean? Please help explain."
  • "excellent work"
  • "Thank you so much for all of your help!!! I will be posting another assignment. Please let me know (once posted), if the credits I'm offering is enough or you ! Thanks again!"
  • "Thank you"
  • "Thank you very much for your valuable time and assistance!"
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

View More Free Quizzes
Related BrainMass Solutions

  • Best Small Companies - Stats

    53240 Best Small Companies - Stats A recent article in Business Week list the "Best Small Companies." We are interested in the current results of the companies' sales and earnings.

  • "Best Small Companies"

    49824 "Best Small Companies" 15. A recent article in Business Week listed the "Best Small Companies." We are interested in the current results of the companies, sales and earnings.

  • Regression analysis

    A recent article in Business Week listed the "Best Small Companies." We are interested in the current results of the companies' sales and earnings.

  • Regression Analysis - Random Sampling

    48155 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.

  • Finding regression line by using Excel

    87173 Stats Problem A recent article in Business Week listed the "Best Small Companies." We are interested in the current results of the companies' sales and earnings.

  • Regression analysis for sales and earnings

    A recent article in Business Week listed the "Best Small Companies." We are interested in the current results of the companies' sales and earnings.

  • Chi-square Test, Correlation & Regression Analysis

    6) A recent article in Business Week listed the "Best Small Companies." We are interested in the current result of the companies' sales and earnings.

  • Primary share earnings

    Develop a scatter diagram for the data with book value on the x-axis. b. What is the sample correlation coefficient, and what dose it tell you about the relationship between the earning per share and the book value?

  • Scatter Diagram

    439614 What is a scatter diagram? What is a scatter diagram? Explain, in your own words, the purpose of a scatter diagram. What is meant by the term regression line and how does one find the line of best fit?

View More Related Solutions