We have measurements from eight companies for the % workforce change in 2010 from 2009 and the % change in profits from 2010 to 2011. % workforce change (x): 1.0 1.5 -0.4 -2.6 -3.8 -5.8 -2.5 -0.1 % profit change (y): 0.4 0.4 0.1 -0.2 -0.5 -7.5 0.2 0.3 We can calculate: Er = -12.7, Ex² = 64.51, Συ-68, Σύ- 57, Σ w- 46.35. %3D %3D %3D Find the sample correlation between the two variables, and fit a simple linear model to the dataset. Also, plot the residuals, ri, against ri, and comment on the fit of the model.

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We have measurements from eight companies for the % workforce change in 2010
from 2009 and the % change in profits from 2010 to 2011.
% workforce change (x): 1.0
% profit change (y):
1.5 -0.4
-2.6 -3.8 -5.8 -2.5 -0.1
0.4 0.4 0.1
-0.2 -0.5 -7.5 0.2
0.3
We can calculate: Er = -12.7, Ex² = 64.51,
Συ--6.8 , Σ 57, Σεy- 46.35.
Find the sample correlation between the two variables, and fit a simple linear model
to the dataset.
Also, plot the residuals, ri, against xi, and comment on the fit of the model.
Transcribed Image Text:We have measurements from eight companies for the % workforce change in 2010 from 2009 and the % change in profits from 2010 to 2011. % workforce change (x): 1.0 % profit change (y): 1.5 -0.4 -2.6 -3.8 -5.8 -2.5 -0.1 0.4 0.4 0.1 -0.2 -0.5 -7.5 0.2 0.3 We can calculate: Er = -12.7, Ex² = 64.51, Συ--6.8 , Σ 57, Σεy- 46.35. Find the sample correlation between the two variables, and fit a simple linear model to the dataset. Also, plot the residuals, ri, against xi, and comment on the fit of the model.
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