HW 3 solution

# Joe has the largest residual because his quiz 2 score

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Joe has the largest residual because his quiz 2 score was well above his predicted score given his low quiz 1 score. The residual is positive because the observed point is well above the regression line. While most students showed an improvement from quiz 1 to quiz 2, Joe’s improvement was much larger. WHO:______Joe_________ THEIR RESIDUAL IS:___ 5.281 pts____________ d. Which student has scores that represent an influential point? Justify briefly. Sidney is considered an influential point because she is an outlier in the x direction. The line will be pulled towards her score. Thankfully, her point lies around the line the that would be generated without her data included. WHO:______Sidney________ WHY:

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3. Suppose managers know that the average number of contacts they make with their clients is 10 per year. They also know the average number of sales per client per year is 652 units. Now they want to predict the number of sales using the number of contacts. Their analysis is below (n = 50). Coefficients Standard Error t Stat P-value Constant 302 43.4074727 15.0385889 5.9306E-21 Contacts 35.0008935 1.39830769 25.0308955 2.1802E-31 Correlation 0.92 Suppose each unit sold results in a profit of \$100. How much profit are you expected to earn per contact ? (Think about what the profit equation is for any business scenario.) Use proper units.
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