The Wall Street Journal conducted a study of basketball spen

The Wall Street Journal conducted a study of basketball spending at top colleges. The study data for 39 colleges is provided.

A. Develop the estimated regression equation that can be used to predict the coach\'s salary given the revenue and the percentage of wins.

b. Is the overall relationship significant? use = .05

c. Are all the independent variables significant? why or why not?

d. Interpret the coefficient for revenue.

e. Is the model a good fit? Why or why not?

School Revenue %Wins Salary

Alabama 6.5 61 1.00

Arizona 16.6 63 0.70

Arkansas 11.1 72 0.80

Boston College 3.4 80 0.53

California 6.0 68 0.85

Cincinnati 5.7 61 0.18

Duke 12.4 90 1.40

Florida 6.5 80 1.70

Florida State 6.8 68 0.74

Gonzaga 2.5 90 0.50

Illinois 11.3 83 0.70

Indiana 11.9 63 0.78

Iowa 10.5 73 0.80

Kansas 11.8 76 1.00

LSU 4.6 76 0.72

Marquette 5.8 67 1.10

Memphis 5.6 90 1.20

Michigan State 11.0 68 1.60

N.C. State 11.4 72 0.90

Nevada 3.3 83 0.26

Northern Iowa 1.2 72 0.18

Ohio State 11.4 85 0.83

Oklahoma 6.2 74 1.00

Pittsburg 7.8 79 0.49

San Diego State 2.6 73 0.36

Southern Illinois 1.2 69 0.21

Syracuse 12.4 66 0.38

Tennessee 5.4 78 0.80

Texas 12.0 83 1.30

Texas A&M 6.5 74 0.63

UAB 1.9 82 0.60

UCLA 7.1 81 0.91

Uconn 7.9 90 1.50

UNC 15.0 78 1.40

Villanova 4.2 89 0.51

Washington 5.0 83 0.89

West Virginia 4.9 67 0.70

Wichita State 3.1 75 0.41

Wisconsin 12.0 66 0.70

Solution

1 )

The regression equation is
salary = - 0.682 + 0.0498 revenue + 0.0147 wins

2)

Analysis of Variance

Source DF SS MS F P
Regression 2 1.8188 0.9094 8.42 0.001
Residual Error 36 3.8877 0.1080
Total 38 5.7065

as the p-value is 0.001<0.05 so we reject H0 and comment that salary is effected by the wins and revenue.

3)

Predictor Coef SE Coef T P
Constant -0.6820 0.5044 -1.35 0.185
revenue 0.04983 0.01345 3.70 0.001
wins 0.014683 0.006291 2.33 0.025

here p-value for revenue is 0.001 and wins is 0.025 both are less than 0.05 so we can comment that  all the independent variables significant.

4)

the coefficient of revenue is 0.0498 so there is 4.98% effect of revenue on salary.