# BUAD310Case2 - BUAD 310 SPRING 07 Case 2 1. a) There are...

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SPRING 07 Case 2 1. a) There are obvious skewness in the graphs of pagecost and circulation. Graphs show that they are skewed to the right. However, the graph of percent male shows that it is bi-modal and the median income graph shows a normal distribution. b) Among the three pairs, only the circulation variable shows a linear relationship with the pagecost. The other two variables do not show any significant relationships with pagecost. 2. a) The multiple regression is useful because the p-value is 0.000< 0.05 with an F statistic of 33.30. b) The regression equation is pagecost = - 8643 + 5.28 circ - 11.0 percmale + 1.22 medianincome Predictor Coef SE Coef T P Constant -8643 12291 -0.70 0.486 circ 5.2815 0.5304 9.96 0.000 percmale -11.00 77.20 -0.14 0.887 medianincome 1.2226 0.5355 2.28 0.027 S = 13129.3 R-Sq = 69.4% R-Sq(adj) = 67.3% Analysis of Variance Source DF SS MS F P Regression 3 17219203510 5739734503 33.30 0.000 Residual Error 44 7584600772 172377290 Total 47 24803804282 Source DF Seq SS circ 1 16098031920 percmale 1 222477265 medianincome 1 898694325 c) Which of the three independent variables is the most contributing can be determined by looking at the p-values of the three with the use of a significance level of 5%. The predictor, circulation has a p-value of 0.000 being the smallest out of all three. And the predictor, medianincome has a p-value of 0.027 being the second smallest. These two p-values are the only two that are smaller than α 0.05. Thus, I would recommend keeping only these two independent variables, circulation and median income, in this regression model. d)

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## This note was uploaded on 06/04/2008 for the course BUAD 310 taught by Professor Lv during the Spring '07 term at USC.

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BUAD310Case2 - BUAD 310 SPRING 07 Case 2 1. a) There are...

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