# Regression exercises

(See attached file for full problem description)

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Exercises

2. The following sample observations were randomly selected.

Determine the coefficient of correlation and the coefficient of determination. Interpret.

3. Bi-lo Appliance Stores has outlets in several large metropolitan areas. The general sales manager plans to air a commercial for a digital camera on selected local TV stations prior to a sale starting on Saturday and ending Sunday. She plans to get the information for Saturday-Sunday digital camera sales at the various outlets and pair them with the number of times the advertisement was

shown on the local TV stations. The purpose is to find whether there is any relationship between the number of times the advertisement was aired and digital camera sales. The pairings are:

a. What is the dependent variable?

b. Draw a scatter diagram.

c. Determine the coefficient of correlation.

d. Determine the coefficient of determination.

e. Interpret these statistical measures.

14. Mr. James McWhinney, president of Daniel-James Financial Services, believes there is a relationship between the number of client contacts and the dollar amount of sales. To document this assertion, Mr. McWhinney gathered the following sample information. The X column indicates the number of client contacts last month, and the Y column shows the value of sales ($ thousands)

last month for each client sampled.

a. Determine the regression equation.

b. Determine the estimated sales if 40 contacts are made.

16. We are studying mutual bond funds for the purpose of investing in several funds. For this particular study, we want to focus on the assets of a fund and its five-year performance. The question is: Can the five-year rate of return be estimated based on the assets of the fund? Nine mutual funds were selected at random, and their assets and rates of return are shown below.

a. Draw a scatter diagram.

b. Compute the coefficient of correlation.

c. Compute the coefficient of determination.

d. Write a brief report of your findings for parts b and c.

e. Determine the regression equation. Use assets as the independent variable.

f. For a fund with $400.0 million in sales, determine the five-year rate of return (in percent).

6. The yield on a 30-year treasury note at the end of each year since 1990 is recorded below. Compute a five-year weighted moving average using weights of .1, .1, .2, .3 and .3, respectively.

Describe the trend in yield.

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#### Solution Summary

There are 5 regression exercises with solutions for each. I have attached an excel file with step-by-step solutions for each problem. I have also attached a word document with written explanations.