Explore BrainMass

Regression analysis

I am attaching a word doc which contains and 2 questions and data. I need step by step answer for the questions in MS_WORD.

Step by step answer will help me understand the concept. Thank you. Please see attached file for full problem description.

A random sample of 85 utility stocks was taken to compare the amount of their annual dividends to the annualized yields of the dividends. The data are given in following Table.

a. Find the correlation coefficient.

b. Can we conclude that the variables are positively associated within the population
of all utilities? Use α = .05

c. Determine the regression equation and write about equation in brief.

Beginning in 1991, the nation's Department of Education began taking corrective and punitive actions against colleges and universities with high student-loan default rates. Those schools with default rates above 60% face suspension from the government's massive student-loan program, whereas schools with default rates between 40% and 60% are mandated to reduce their default rates by 5% a year or face a similar penalty (Tampa Tribune, June 21, 1989). A list of 66 colleges and universities in Florida with their student-loan default rate is provided in the table.

An SPSS printout giving descriptive statistics for the data set is shown below

a. Locate the mean and median default rates on the printout.

b. Locate the variance and standard deviation of the default rates on the printout.

c. What proportions of measurements would you expect to find within two standard deviations of the mean?

d. Determine the proportion of measurements (default rates) that actually fall within the interval of part c. Compare this result with your answer to part c.

e. Suppose the college with the highest default rate (Florida College of Business - 76.2%) was omitted from the analysis. Would you expect the mean to increase or decrease? Would you expect the standard deviation to increase or decrease?

f. Calculate the mean and standard deviation for the data set with Florida College of Business excluded. Compare these results with your answer to part e.

g. Answer parts c and d using the recalculated mean and standard deviation. This problem illustrates the dramatic effect a single observation can have on the analysis.

© BrainMass Inc. brainmass.com July 22, 2018, 1:14 am ad1c9bdddf


Solution Summary

Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.