1. Regress earnings as a percentage of gross revenue (earningspercent) on ft turnover (ftturn):
Y = earnings/revenue
X = FT turnover %
Paste the output into a Word document.
2. Write the linear equation
3. Calculate R2 – show your math
4. Interpret R2 in a sentence.
5. Calculate the F-test and associated significance level – show your math.
6. Is this regression significant? Why or why not?
7. Calculate the t-statistic for FT turnover – show your math.
8. Is the unstandardized b coefficient for FT turnover significant? Why or why not?
9. Interpret the unstandardized b coefficient for FT turnover in a sentence.
10. Based on the estimated linear equation, what would be the projected earnings as a percentage of gross revenue for an auction with 50% FT turnover?
11. Create a scatterplot for earnings/revenue and FT turnover that displays the linear equation.
12. Interpret the normality of the residuals
13. Plot the standardized predictions and residuals - is heteroscedasticity present?
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