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# Regression Analysis to Answer a Research Question

Seeking a full statistical analysis of the attached data file to explain:

H0: Engaging in low-cost, high-risk activities improves airline safety.
Ha: Engaging in low-cost, high-risk enhancements do not improve airline safety.

Define the null and alternative hypotheses and state how the null hypothesis will be tested (indicate the type of test used and select an appropriate level of significance), or describe any other statistical analysis used to answer the research questions.

B. Statistical Methods
Discuss the methods used to analyze the dependent variable and/or test the null hypothesis. Define any assumptions made concerning the sample population and briefly discuss why the specific methods were chosen. You will either use data from the article or use simulated data for your statistical analyses.

C. Results
Explain the results of your statistical analysis to answer the research questions developed for Week Two. Demonstrate how your research was applied to resolve the business problem and clearly state whether or not relevant null hypotheses were rejected and/or how other appropriate statistical analyses were applied. Determine the conclusions that were derived from this study.

#### Solution Preview

The data is for the aviation industry and details the aggregate incident history. I'm trying to test to see if there is a relationship between that and the aggregate income/expenditures.

Seeking a full statistical analysis of the attached data file to explain:
H0: Engaging in low-cost, high-risk activities improves airline safety.
Ha: Engaging in low-cost, high-risk enhancements do not improve airline safety.

Define the null and alternative hypotheses and state how the null hypothesis will be tested (indicate the type of test used and select an appropriate level of significance), or describe any other statistical analysis used to answer the research questions.

You have the null and alternative hypotheses backwards. They should be:

H0: Engaging in low-cost, high-risk activities does not improve airline safety.
Ha: Engaging in low-cost, high-risk enhancements does improve airline safety.

We only have data on low-cost, high-risk activities for the years 2000 - 2006. What I think we should do is do a regression analysis to see if the low-cost, high-risk safety budget is related to the number of accident and/or the number of fatal accidents. This means that we can state the hypotheses to be tested as:

H0: The amount of money in the low-cost, high-risk safety budget is not correlated with the number of accidents or the number of fatal accidents. For each regression, the slope of the regression line and the r-squared value will both be equal to 0.

Ha: The amount of money in the low-cost, high-risk safety budget is negatively correlated with the number of accidents or the number of fatal accidents (the greater the amount in the budget, the less accidents). For each regression, the slope of the regression line will be negative, and the slope and the r-squared value will both be different from 0.

B. Statistical Methods

Discuss the methods used to analyze the dependent variable and/or test the null ...

#### Solution Summary

A regression analysis to answer research questions are determined. The relationship between high risk activities in the airline industry and the aggregate are analyzed.

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