# top answer: Chapter 8 Trendlines and Regression Analysis Instructions: Please submit your work in one single E

Chapter 8 Trendlines and Regression Analysis

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Instructions: Please submit your work in one single Excel file with one tab/worksheet for each problem.

Simple Linear Regression, Residual Analysis and Regression Assumptions

1. (30 points) The Excel file National Football League provides various data on professional football for one season.

a. Construct a scatter diagram for points/game and yards/game in the Excel file. Does there appear to be a linear relationship?

b. Use the Regression tool to develop a model for predicting points/game as a function of yards/game. Explain the statistical significance of the model and value.

c. Analyze the residuals to determine if the assumptions underlying the regression analysis are valid. In addition, use the standard residuals to determine if any possible outliers exist.

Building Good Regression Models

2. (40 points) Use the data in the Excel file Job Satisfaction to find the best multiple regression model to predict the overall satisfaction as a function of the other variables.

a. Show your steps to build the best regression model.

b. What managerial implications does your result have?

Regression with Categorical Independent Variables

3. (30 points) A national homebuilder builds single-family homes and condominium-style townhouses. The Excel file House Sales provides information on the selling price, lot cost, type of home, and region of the country (M = Midwest, S = South) for closings during on month.

a. Develop a multiple regression model for sales price as a function of lot cost and type of home without any interaction term.

b. Determine if an interaction exists between lot cost and type of home and find the best model.

c. What is the predicted price for either a single-family home or a townhouse with a lot cost of \$30,000?

## Data

 House Sales Region Type Selling Price Lot Cost Midwest Townhouse \$85,145 \$17,030 Midwest Townhouse \$112,740 \$20,700 Midwest Townhouse \$115,350 \$18,030 Midwest Townhouse \$116,415 \$19,600 Midwest Townhouse \$133,070 \$24,455 Midwest Single Family \$136,530 \$25,500 Midwest Townhouse \$139,435 \$29,155 Midwest Townhouse \$139,955 \$30,400 Midwest Townhouse \$147,905 \$24,650 Midwest Single Family \$153,845 \$27,500 Midwest Townhouse \$155,270 \$19,600 Midwest Townhouse \$155,870 \$24,650 South Single Family \$160,000 \$29,500 Midwest Single Family \$165,220 \$25,500 Midwest Single Family \$165,350 \$25,000 Midwest Single Family \$168,354 \$27,316 Midwest Single Family \$168,500 \$33,000 Midwest Single Family \$170,000 \$25,200 South Townhouse \$172,749 \$45,025 Midwest Single Family \$175,000 \$28,000 Midwest Townhouse \$175,470 \$28,600 Midwest Townhouse \$179,365 \$32,200 South Townhouse \$181,916 \$45,025 South Townhouse \$182,237 \$45,025 Midwest Single Family \$183,370 \$28,000 Midwest Single Family \$184,210 \$28,000 Midwest Single Family \$184,460 \$22,300 Midwest Townhouse \$184,873 \$33,400 Midwest Single Family \$185,160 \$29,000 South Single Family \$186,000 \$35,851 Midwest Townhouse \$187,390 \$27,000 Midwest Single Family \$188,603 \$31,300 Midwest Single Family \$189,120 \$35,000 South Single Family \$191,028 \$45,000 South Townhouse \$196,898 \$45,025 South Townhouse \$198,202 \$45,025 South Single Family \$200,119 \$45,000 South Townhouse \$200,423 \$45,025 Midwest Single Family \$201,700 \$40,940 South Single Family \$202,000 \$31,160 South Townhouse \$203,076 \$45,025 Midwest Single Family \$203,950 \$33,000 South Single Family \$204,900 \$34,000 South Single Family \$205,821 \$39,299 South Single Family \$206,400 \$35,851 South Single Family \$207,345 \$35,600 South Single Family \$209,400 \$43,579 Midwest Single Family \$210,380 \$33,856 Midwest Single Family \$211,513 \$31,300 South Single Family \$211,797 \$34,000 Midwest Townhouse \$212,079 \$33,400 South Single Family \$214,205 \$36,500 Midwest Single Family \$214,900 \$31,300 South Single Family \$216,049 \$35,600 South Single Family \$219,990 \$37,557 Midwest Single Family \$220,257 \$31,300 Midwest Single Family \$223,890 \$28,000 South Townhouse \$224,108 \$45,025 South Single Family \$225,900 \$28,618 South Single Family \$226,000 \$35,600 South Townhouse \$230,000 \$45,025 Midwest Single Family \$230,440 \$33,000 Midwest Single Family \$230,555 \$28,000 Midwest Single Family \$233,900 \$44,200 South Single Family \$234,971 \$29,202 South Single Family \$239,000 \$39,169 South Single Family \$239,870 \$41,354 South Single Family \$241,195 \$41,340 South Single Family \$242,191 \$33,434 South Single Family \$242,899 \$48,252 South Single Family \$246,648 \$41,600 Midwest Single Family \$248,500 \$20,000 South Single Family \$249,900 \$38,200 Midwest Single Family \$250,005 \$33,000 South Townhouse \$250,800 \$73,400 South Single Family \$252,135 \$41,341 South Single Family \$253,055 \$41,340 South Single Family \$254,048 \$39,680 South Single Family \$255,000 \$43,198 South Single Family \$256,235 \$48,500 South Single Family \$257,040 \$37,631 South Townhouse \$260,100 \$73,400 Midwest Single Family \$262,740 \$44,900 South Single Family \$262,890 \$48,500 South Single Family \$265,058 \$41,404 Midwest Townhouse \$265,500 \$35,800 South Townhouse \$267,060 \$73,400 South Single Family \$267,250 \$45,676 South Townhouse \$267,640 \$73,400 South Single Family \$268,000 \$43,344 Midwest Single Family \$268,210 \$29,700 South Single Family \$268,500 \$41,099 South Townhouse \$269,410 \$73,400 South Single Family \$270,518 \$46,499 Midwest Single Family \$271,105 \$45,000 Midwest Single Family \$274,455 \$41,000 South Single Family \$274,903 \$45,345 Midwest Single Family \$277,720 \$44,650 South Single Family \$280,622 \$45,130 South Single Family \$280,804 \$40,667 Midwest Single Family \$281,487 \$57,285 South Single Family \$281,824 \$50,448 Midwest Single Family \$283,440 \$50,900 South Single Family \$286,758 \$57,000 South Single Family \$287,771 \$46,300 Midwest Single Family \$289,000 \$44,000 South Single Family \$290,000 \$48,300 South Single Family \$290,190 \$82,250 South Townhouse \$294,450 \$73,400 South Single Family \$294,990 \$57,000 South Single Family \$299,096 \$43,784 South Single Family \$301,500 \$59,000 South Single Family \$305,000 \$49,067 Midwest Single Family \$307,373 \$41,292 South Single Family \$307,387 \$45,850 South Single Family \$307,663 \$44,840 South Single Family \$309,075 \$82,250 South Single Family \$310,100 \$41,800 South Single Family \$310,372 \$60,000 South Single Family \$312,898 \$40,768 South Single Family \$318,274 \$85,800 South Single Family \$318,523 \$50,000 South Single Family \$319,602 \$82,250 South Single Family \$322,920 \$82,250 Midwest Single Family \$323,716 \$34,500 South Single Family \$324,266 \$47,891 South Single Family \$324,412 \$62,523 South Single Family \$326,570 \$51,000 South Single Family \$329,611 \$48,611 Midwest Single Family \$330,486 \$35,000 South Single Family \$330,710 \$49,920 South Single Family \$333,158 \$49,123 South Townhouse \$335,000 \$68,375 South Single Family \$337,374 \$70,399 South Single Family \$337,380 \$49,150 South Single Family \$338,065 \$54,850 South Single Family \$340,000 \$40,000 South Single Family \$340,730 \$50,850 South Single Family \$342,423 \$48,309 Midwest Single Family \$348,744 \$53,000 South Single Family \$350,702 \$46,386 South Single Family \$352,781 \$60,000 South Single Family \$354,065 \$48,115 South Single Family \$354,117 \$56,219 South Single Family \$355,688 \$65,373 South Single Family \$358,162 \$44,470 South Single Family \$359,949 \$50,591 South Single Family \$366,990 \$55,508 South Single Family \$367,600 \$50,000 South Single Family \$369,101 \$46,773 South Single Family \$371,152 \$58,223 South Single Family \$379,000 \$72,915 South Single Family \$379,424 \$64,902 South Single Family \$379,575 \$44,294 South Single Family \$385,000 \$75,000 South Single Family \$385,942 \$49,123 South Single Family \$387,527 \$48,000 South Single Family \$398,651 \$65,429 South Single Family \$400,330 \$75,510 South Single Family \$404,510 \$58,225 South Single Family \$407,076 \$48,668 Midwest Single Family \$410,810 \$66,500 South Single Family \$417,790 \$63,099 South Single Family \$432,426 \$57,422 South Single Family \$444,304 \$53,938 South Single Family \$446,507 \$75,510 South Single Family \$492,820 \$84,122 South Single Family \$575,120 \$79,790

## Data

 Job Satisfaction Scale: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strongly Agree 1=Low, 10=High Years of Service I am able to express ideas for improving my job I have good communication with my supervisor My supervisor recognizes a job well done I receive the proper training to do my job My work conditions are good I have the tools and information needed to do my job well I have a good balance between work and my personal life Overall Job satisfaction Department Years Ideas Communication Recognition Training Work Conditions Tools and Information Work/Life Balance Satisfaction Management 1 5 4 4 3 5 3 5 9 Administrative 16 2 3 2 2 4 5 2 3 Production 16 2 3 2 4 4 4 2 5 Production 15 2 3 1 4 4 4 2 4 Quality Control 1 5 5 5 5 5 5 5 10 Maintenance 17 5 4 3 5 5 5 3 8 Maintenance 15 5 5 5 5 5 5 5 9 Production 13 3 3 3 4 4 4 3 8 Quality Control 11 3 4 4 4 5 5 2 7 Production 3 5 5 5 5 5 5 5 10 Production 6 2 2 1 3 3 4 2 4 Production 1 5 4 4 3 4 5 5 9 Production 3 3 4 3 4 5 5 4 7 Production 2 4 4 4 4 5 5 5 8 Production 3 3 4 3 3 2 4 4 6 Shipping / Receiving 21 3 2 2 3 2 4 3 5 Production 2 4 3 4 3 3 4 4 6 Production 2 4 5 4 4 4 4 4 8 Production 15 5 4 3 4 3 5 3 7 Management 3 3 4 3 3 4 5 5 8 Production 5 4 5 3 2 3 5 4 7 Shipping / Receiving 8 3 2 2 2 2 4 2 4 Management 3 2 2 2 2 3 5 3 3 Administrative 2 4 4 3 4 4 5 3 9 Production 8 5 5 3 5 3 5 3 8 Shipping / Receiving 32 2 3 2 4 2 5 3 5 Production 17 4 3 4 3 3 5 2 6 Shipping / Receiving 2 5 5 5 5 5 5 5 10 Production 15 5 3 4 5 5 5 5 9 Production 5 2 4 2 2 2 5 3 3 Administrative 14 4 3 2 2 5 5 5 6 Shipping / Receiving 18 4 4 4 5 5 5 5 8

## Data

 National Football League Data 2007 Season Team Points/Game Yards/Game Rushing Yards/Game Passing Yards/Game Opponent Yards/Game Opponent Rushing Yards/Game Opponent Passing Yards/Game Penalties Penalty Yards Interceptions Fumbles Passes Intercepted Fumbles Recovered Arizona Cardinals 25.2 344.1 90 254.1 330.2 97.9 232.3 137 1,128 18 11 24 12 Atlanta Falcons 16.2 301 95 206 355.5 127.1 228.4 105 891 16 12 15 9 Baltimore Ravens 17.2 302 112.3 189.7 301.6 79.3 222.3 107 873 17 6 14 26 Buffalo Bills 15.8 277.1 112.5 164.6 362.9 124.6 238.4 78 633 18 12 14 7 Carolina Panthers 16.7 284.9 114 170.9 324.8 110.7 214.1 95 801 14 16 17 12 Chicago Bears 20.9 293.2 83.1 210.1 354.7 122.9 231.8 111 839 16 17 21 13 Cincinnati Bengals 23.8 348 97.3 250.8 348.8 118.3 230.4 90 670 19 16 20 10 Cleveland Browns 25.1 351.3 118.4 232.9 359.6 129.5 230.1 114 868 17 10 20 9 Dallas Cowboys 28.4 365.7 109.1 256.6 307.6 94.6 213.1 104 815 19 10 19 5 Denver Broncos 20 346.3 122.3 224 336 142.6 193.4 90 610 14 16 15 14 Detroit Lions 21.6 322.9 80.5 242.4 377.6 119.4 258.2 100 676 17 18 22 14 Green Bay Packers 27.2 370.7 99.8 270.9 313.3 102.9 210.4 113 1,006 19 9 15 9 Houston Texans 23.7 333.6 99.1 234.4 344.2 114.1 230.1 82 636 11 14 21 17 Indianapolis Colts 28.1 358.7 106.6 252.1 279.7 106.9 172.8 67 515 22 15 14 5 Jacksonville Jaguars 25.7 357.4 149.4 208 313.8 100.3 213.5 76 594 20 10 8 13 Kansas City Chiefs 14.1 276.8 78 198.8 319.4 130.6 188.9 101 697 14 8 20 13 Miami Dolphins 16.7 287.5 98.1 189.4 342.2 153.5 188.7 91 732 14 8 16 13 Minnesota Vikings 22.8 336.2 164.6 171.6 338.1 74.1 264.1 86 662 15 16 14 16 New England Patriots 36.8 411.2 115.6 295.7 288.3 98.3 190.1 78 690 19 12 9 6 New Orleans Saints 23.7 361.2 91.6 269.6 348.1 102.9 245.3 68 581 13 10 18 12 New York Giants 23.3 331.4 134.3 197.1 305 97.7 207.3 77 652 15 10 20 14 New York Jets 16.8 294.7 106.3 188.4 331.9 134.8 197.1 63 486 15 6 19 6 Oakland Raiders 17.7 294.8 130.4 164.4 341.6 145.9 195.8 120 864 18 8 20 17 Philadelphia Eagles 21 358.1 123.4 234.7 311.4 95.8 215.6 83 649 11 8 15 12 Pittsburgh Steelers 24.6 327.4 135.5 191.9 266.4 89.9 176.5 80 651 11 14 14 8 San Diego Chargers 25.8 315.2 127.4 187.8 320.3 107 213.3 94 761 30 18 16 8 San Francisco 49ers 13.7 237.3 92.3 145 346.2 118.5 227.7 97 702 12 10 17 17 Seattle Seahawks 24.6 348.9 101.2 247.8 321.8 102.8 219.1 59 428 20 14 13 11 St. Louis Rams 16.4 297.5 95.4 202.1 341.1 115.3 225.8 94 794 18 9 28 9 Tampa Bay Buccaneers 20.9 326.8 117 209.8 278.4 107.9 170.5 81 614 16 19 8 12 Tennessee Titans 18.8 311.7 131.8 179.9 291.6 92.4 199.2 101 773 22 12 17 17 Washington Redskins 20.9 333.4 116.9 216.4 305.3 91.3 214 90 751 14 10 11 18

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