Simple Regression Analysis

Simple Regression Analysis The purpose of this assignment is to apply simple regression
concepts, interpret simple regression analysis models, and justify
business predictions based upon the analysis.For this assignment, you will use the "Trucks" dataset. You will use
SPSS to analyze the dataset and address the questions presented.
Findings should be presented in a Word document along with the SPSS
outputs.The business characteristics of n = 250 U.S. trucking and delivery
companies for calendar year 2011 were recorded. Among the
characteristics studied were the number of drivers and the number of
trucks (power units) each company employed.Part 1:Given that the data consists of counts and range of counts is large, a
natural log transformation is usually performed to improve the linear
model results. Apply a natural log transform to both variables and then
plot the Y = log(Trucks) vs. X = log(Drivers).Is there a linear relationship? Justify your answer by providing the SPSS output as an illustration.Part 2:Build a simple linear model by regressing Y on X and testing whether
or not a relationship exists between the number of drivers and the
number of trucks. Address the following questions in your written
response:After fitting the model, plot the standardized residuals (on
vertical axis) vs. the standardize predictions (on horizontal axis). Is
there a pattern? How would you interpret the pattern or lack of pattern?After fitting the model, derive the normal probability plot and interpret what the plot means.What is the coefficient of determination, R2, of the model? How would you interpret the R2?What is the estimate of β1? How would you interpret the estimate of β1?Is the estimate of β1 significantly different than 0? Assume an α = 0.01.What is a 95% confidence interval for β1? How would you interpret the 95% confidence interval for β1?If a new trucking and delivery company with 4,900 drivers were to be
formed, how many trucks would you expect the company would employ based
on the model?APA format is not required, but solid academic writing is expected.This assignment uses a grading rubric. Please review the rubric prior
to beginning the assignment to become familiar with the expectations
for successful completion. Please include ... Discussion of the linear relationship and supporting SPSS output chart are complete and correct,Answers to simple regression analysis questions and supporting SPSS output charts are complete and accurate, and Writer is clearly in command of standard, written, academic English. Also please answer these 2 questions... QUESTION 1 -
Suppose you wanted to understand the relationship
between a customer's yearly income (X) and the number of movies (Y) the
customer watched in a year. You then gather data on incomes and the
number of movies watched in a year. The range of incomes in your data
set is $5K to $150K. After fitting a simple linear model and performing
all the appropriate diagnostics, the model showed that, on average, for
every $10K in income, the customer watched 1.5 movies in the year. So,
for example, if a customer earned 60K in a year, he or she would be
expected to watch nine movies during the year. Now you want to apply
this model to your very wealthy friend who will earn $1 million in the
next year. Is this an appropriate application of your model? Why or why
not? Provide specific examples to justify your opinion. QUESTION 2- If you regress daily high temperature (Y) on the
amount of ice cream sales (X), you will notice that there is a strong
positive correlation between the two. In other words, as daily ice cream
sales increase, the daily high temperature increases. This implies that
if we knew the amount of ice cream sales in a particular day, we could
estimate, with a high level of accuracy, the high temperature in that
day. Does this mean that if we wanted to increase the daily temperature,
we need to sell more ice cream? Explain why or why not?