Lilit Mejlumyan

Homework 9 (100 points)

Instruction for submitting homework assignment.

1. Write all your answers right below the question in this word document.
2. Submit the homework (in word or pdf format) to the Moodle by 23:59 PM of May 11, no late
homework will be accepted.
3. Name your homework assignment file with your First Name and Last Name and upload to the
Moodle.
4. Data for problems are in Excel file worksheets with corresponding name.

If I detect two very identical works, both of them will get 0 points.
 1. A study was conducted by clinical researchers to investigate the relationship between blood
pressure drug dosage and blood pressure reduction. They collected a dataset containing
information on drug dosage in milligrams and its corresponding decrease, which can be
found in the PROBLEM 1 worksheet of the HW9 Excel file. (70 points)

a. Develop a scatter plot with dosage on the horizontal axis and the blood pressure reduction
on the vertical axis. (5 points)
b. Based on the scatter diagram created, what can be inferred about the relationship between
the two variables? (5 points)
c. Show the Excel output of the regression analysis and based on that write the estimated
regression equation. (5 points)
d. What does the significance test say about the relationship? Conduct the testing on a 0.05
level of significance. (5 points)
e. Determine the coefficient of determination, that is r2, and interpret its meaning in this
problem. (8 points)
f. What do the values of intercept (b0) and slope (b1) tell us about the relationship? (8
points)
g. Predict the reduction in blood pressure that would result from a medication dosage of 21
mg, using the estimated regression equation. (8 points)
h. Create a residuals plot (with dosage on the horizontal axis and the residuals on the
vertical axis) and explain (analyzing only visually) whether the assumptions of regression have
been seriously violated. (8 points)
i. Construct a 95% confidence interval estimate of the population slope and interpret its
meaning (8 points)
j. Construct a 95% confidence interval estimate of the mean blood pressure reduction for a
given 14mg dosage. (10 points)

Answers:

a)
b) As the value of variable x increases, there is a tendency for the value of variable y also to
increase. This indicates that x and y have a positive correlation, meaning that they exhibit a
pattern where higher values of x are associated with higher values of y.

c)

d)The significance test of the equation shows that Null hypothesis has no significant relationship,
however as far as Alternative hypothesis is concerned there is significant relationship.

Significance level 0.05, a>p-value

3.7103796565…E-34<0.05

So Reject Null hypothesis as there is relationship between these two variables.

e)Coefficient of determination = R^2 = 0.978553834, shows that almost 97.85% of dependent y can be
explained by the independent variable x .

f)b1 = 1.0541961, indicates that the change in average blood pressure reduces owing to a change in
drug.

B0 = 0.9598161, when the drug dosage is equal to 0 the value of the reduction of blood pressue is
showed.

j) y =1.0541961x+0.9598161, x=21

y = 23.098

h)

We can conclude from the graph that it varies significantly from the Scatterplot since it collected all of
the data points along a straight line with a positive slope. In contrast, the residual plot reveals no
discernible pattern of the dots.

I)b1 (+-) t x Sb1 = 1.054196 (+-) 2.023 x 0.02499 = 1.104, 1.0038

j) x=14

Y=15.72

Y (+-) t x Syx ___1__ = 16.1165, 15.33

hi

2. Financial analysts want to determine whether there is any linear relationship between the
costs on marketing campaign and business revenue. The data collected is stored in PROBLEM 2
Worksheet of HW9 excel file. (30 points)
a. Develop a scatter diagram with the cost of campaign as the independent variable. (6 points)

b. Develop the estimated linear regression equation that can be used to predict the revenue given
the cost of the campaign. (6 points)

c. Determine the coefficient of determination and interpret its meaning in this problem. (6 points)

d. At the 0.05 level of significance, is there evidence of a linear relationship between the cost of
the campaign and the revenue. (6 points)

e. Based on estimated residuals plot (which you should construct), evaluate whether the
assumptions of regression have been seriously violated. (6 points)

a)

b) Linear Regression Equation y=56.4512+5.77x

c) The coefficient of determination, R2 = 0.6953, shows that the independent variable Marketing
Campaign Cost can explain about 69.53% of the variation in the dependent variable Business Revenue.

d) There is no link, according to the null hypothesis.

There is a linear association p-value of 4.16E-070.05, which implies we reject the null hypothesis since
there is evidence of a linear relationship between the variables.
e)
it has not been seriously violated