Question 1:

The following data give the percentage of women working in five companies in the retail and trade
industry. The percentage of management jobs held by women in each company is also shown.
%Working 60 67 75 50 43 79 23 35 50
% 49 21 30 50 63 30 54 70 55
Management

a. Develop a scatter diagram for these data with the percentage of women working in the
company as the independent variable.
b. What does the scatter diagram developed in part (a) indicate about the relationship between
the two variables?
c. Develop the estimated regression equation by computing the values of b0 and b1.
d. Interpret the slope of the regression equation in the meaning of context. Define the y-
intercept, do the y-intercept has a real meaning?
e. Predict the percentage of management jobs held by women in a company that has 60%
women employees.
Question 2:
A sales manager collected the following data on annual sales for new customer accounts and the
number of years of experience for a sample of 10 salespersons.

a. Develop a scatter diagram for these data with years of experience as the independent
variable.
b. Develop an estimated regression equation that can be used to predict annual sales given
the years of experience.
c. Use the estimated regression equation to predict annual sales for a salesperson with 9
years of experience.
Question 3:
Bicycling, the world’s leading cycling magazine, reviews hundreds of bicycles throughout the
year. Their “Road-Race” category contains reviews of bikes used by riders primarily interested
in racing. One of the most important factors in selecting a bike for racing is the weight of the
bike. The following data show the weight (pounds) and price ($) for 10 racing bikes reviewed by
the magazine (Bicycling website, March 8, 2012). (Hint: Compute y-values in thousands of
dollars)

a. Use the data to develop an estimated regression equation that could be used to estimate
the price for a bike given the weight.
b. Find SST, SSE and SSR
c. Compute r2. Did the estimated regression equation provide a good fit?
d. Predict the price for a bike that weighs 15 pounds.