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NEWS has gathered data over the last 52
weeks. Two of the data items that have been gathered are Profit and the
Number of Defective Items. | |
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Question 1:
Using the data given below, complete Task 1 and provide a very brief,
general description of whether or not a relationship exists | |
between Profit and the Number of Defective
Items. | | | | | | | | | | | |
ANSWER: |
A downward trend is observed between profit
and number of defectives. The points are close to each other implying there
is a strong neagtive linear relationship between profit and number of
defectives. |
|
Question 2:
Using the data given below, complete Task 2 and provide a statistical
description of whether or not a relationship appears to exist | |
between Profit and the Number of Defective
Items. | | | | | | | | | | | |
ANSWER: |
Since the value is
close to -1, I observe there is a strong negative linear relaitonship between
Number of Defective Items and profits. |
by taking the sqrt of
R^2 there is a negative linear relationship between profit and number of
defects. |
|
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Week | Profit
(thousands) | Number of Defective Items | | | | | | | | | | | | | |
1 | $
35.00 | 974 | | | | | | | | | | | | | |
2 | $
490.00 | 693 | | Task 1:
Create a Scatterplot | | | | | | | | | |
3 | $
777.00 | 248 | | Step 1. Highlight the two columns of data
(Profit, Defective Units) | | | | | |
4 | $
922.00 | 277 | | Step 2. Click the Quick Analysis icon on the
bottom right | | | | | | |
5 | $
519.00 | 509 | | Step 3. Select Charts and Scatter | | | | | | | | |
6 | $
520.00 | 635 | | | | | | | | | | | | | |
7 | $
899.00 | 200 | | Place the Chart below this row | | | | | | | | | |
8 | $
391.00 | 743 |
| | | | | | | | | | | | |
9 | $
577.00 | 563 | | | | | | | | | | | | | |
10 | $
419.00 | 715 | | | | | | | | | | | | | |
11 | $
667.00 | 397 | | | | | | | | | | | | | |
12 | $
399.00 | 720 | | | | | | | | | | | | | |
13 | $
540.00 | 659 | | | | | | | | | | | | | |
14 | $
954.00 | 123 | | | | | | | | | | | | | |
15 | $
1,078.00 | 8 | | | | | | | | | | | | | |
16 | $
563.00 | 444 | | | | | | | | | | | | | |
17 | $
619.00 | 464 | | | | | | | | | | | | | |
18 | $
625.00 | 483 | | | | | | | | | | | | | |
19 | $
351.00 | 715 | | | | | | | | | | | | | |
20 | $
674.00 | 444 | | | | | | | | | | | | | |
21 | $
547.00 | 639 | | Task 2:
Correlation and Regression Fitted Line | | | | | | | |
22 | $
578.00 | 503 | | Step 1. Place your mouse over any point
within your scatterplot above and right click. Then select Add
Trendline. |
23 | $
609.00 | 565 | | Step 2. Select Linear, then scroll down and
Display Equation and R squared Value on Chart | | |
24 | $
228.00 | 785 | | Step 3. Place the values in a visible area
of the chart so that they are legible and not covered by any of the data |
25 | $
871.00 | 286 | | | | | | | | | | | | | |
26 | $
188.00 | 842 | | Determine the Correlation Coefficient (R),
using the CORREL function and highlighting each column (Profit,
Defective). |
27 | $
632.00 | 480 | | CORRELATION COEFFICIENT = | | (0.977) | | | | | | | |
28 | $
442.00 | 721 | | | | | | | | | | | | | |
29 | $
442.00 | 571 | | Check the Correlation Coefficient (R) by
taking the square root (SQRT) of the R squared value in the chart above. |
30 | $
1,114.00 | 25 | | Determine the sign (+ or -) of R based on
the direction of the regression line. | | | | |
31 | $
864.00 | 272 | | | | | | | | | | | | | |
32 | $
825.00 | 241 | | CORRELATION COEFFICIENT = | | 0.977 | Strong negative association (r= -0.9)
generally observed between the profit amount and the number of defective
items. |
33 | $
750.00 | 252 | | | | | | | | | | | | | |
34 | $
615.00 | 500 | | | | | | | | | | | | | |
35 | $
445.00 | 674 | | | | | | | | | | | | | |
36 | $
282.00 | 732 | | | | | | | | | | | | | |
37 | $
409.00 | 701 | | | | | | | | | | | | | |
38 | $
637.00 | 401 | | | | | | | | | | | | | |
39 | $
646.00 | 536 | | | | | | | | | | | | | |
40 | $
999.00 | 156 | | | | | | | | | | | | | |
41 | $
232.00 | 824 | | | | | | | | | | | | | |
42 | $
152.00 | 964 | | | | | | | | | | | | | |
43 | $
874.00 | 212 | | | | | | | | | | | | | |
44 | $
981.00 | 218 | | | | | | | | | | | | | |
45 | $
289.00 | 747 | | | | | | | | | | | | | |
46 | $
771.00 | 356 | | | | | | | | | | | | | |
47 | $
806.00 | 303 | | | | | | | | | | | | | |
48 | $
921.00 | 113 | | | | | | | | | | | | | |
49 | $
150.00 | 883 | | | | | | | | | | | | | |
50 | $
113.00 | 910 | | | | | | | | | | | | | |
51 | $
1,084.00 | 85 | | | | | | | | | | | | | |
52 | $
350.00 | 745 | | | | | | | | | | | | | |
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