Linear Regression Analysis
Terry Downes owns a commercial cleaning company. He has conducted a survey of customers to determine how satisfied they are with the work performed. He devised a 100-point rating scale—with 0 being poor and 100 being excellent service, selected a random sample of 16 customers, and asked them to rate the service. He also recorded the number of worker hours spent in the customer’s facility. These are in the file named Downes.xls
Use Excel to complete the following:
- Develop a scatter plot showing the variables, rate of service, and worker hours, with the y variable on the vertical axis and the x variable on the horizontal.
- Develop a linear regression model to explain the variation in the service rating using a significant level alpha = 0.10
- Estimate the regression equation for the model.
Use Word to complete a short report to include the following:
- The scatter plot describing the relationship of the variables and the estimated linear regression equation.
- The null and alternative hypotheses at the significant level alpha = 0.10
- The regression analysis showing the results of the pertinent hypothesis test, using a significance level of 0.10.
- The analysis of the linear regression indicating if the model is significant based on the p-value, e.g., rejecting or failing to reject the null hypothesis.
- The significance of the R2 (Coefficient of determination) in the model.
Note: Submit your work in a Word document and attach your Excel file.