BUSI 6220 FALL 2012 HW1 SOLUTIONS

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1.1. Simple Regression in Excel (Excel 2010).

To get the Data Analysis tool, first click on File > Options > Add-Ins > Go > Select Data Analysis
Toolpack & Toolpack VBA. Data Analysis is now available under Excels Data tab. Open the
Excel Worksheet GPAvsGMAT.xls and select Data Analysis > Regression. Then fill out the
popup window as shown below, specifying GPA as the Y variable and GMAT as the X variable:


This will produce the output:
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.8086001
R Square 0.6538342
Adjusted R Square 0.6346027
Standard Error 0.4350142
Observations 20
ANOVA
df SS MS F Significance F
Regression 1 6.43372807 6.43373 33.9982 1.59668E-05
Residual 18 3.40627193 0.18924
Total 19 9.84
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%Lower 95.0% Upper 95.0%
Intercept -1.699561 0.72677682 -2.3385 0.0311 -3.22646284 -0.17266 -3.2264628 -0.17265997
GMAT 0.0083991 0.001440476 5.8308 1.6E-05 0.005372795 0.011425 0.0053728 0.01142545



1.1b. Simple Regression in Excel (Excel 2007).
BUSI 6220 FALL 2012 HW1 SOLUTIONS
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To get the Data Analysis tool in Excel 2007, first click on the Office button (top left corner), and
select Excell options > Add-Ins > Go > Select Data Analysis Toolpack & Toolpack VBA. Data
Analysis is now available under Excels Data tab.

1.1c. Simple Regression in Excel (Excel 2003).
Open the Excel Worksheet GPAvsGMAT.xls and select Tools > Data Analysis > Regression.
Then fill out the popup window the same way as shown for Excel 2010. In case Data Analysis is
not found under Tools, add it under Tools > Add-Ins.

1.2. Simple Regression in IBM SPSS.

1.2.1. Start IBM SPSS Statistics 20, available from the Statistics menu of the standard COB PC
configuration. Select File > Open > Data. Select to see Files of type: Excel. Open
GPAvsGMAT.xls. Confirm that variable names should be read from the first row of data.



1.2.2. Select Analyze > Regression > Linear. Specify Dependent=GPA, Independent=GMAT.

BUSI 6220 FALL 2012 HW1 SOLUTIONS
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Select OK. This will produce the following output:

Regression

Variables Entered/Removed
b

Model
Variables
Entered
Variables
Removed Method
1
GMAT
a

. Enter
a. All requested variables entered.
b. Dependent Variable: GPA


Model Summary
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1
.809
a

.654 .635 .4350
a. Predictors: (Constant), GMAT


ANOVA
b

Model
Sum of
Squares df Mean Square F Sig.
1 Regression
6.434 1 6.434 33.998 .000(a)
Residual
3.406 18 .189
Total
9.840 19
a. Predictors: (Constant), GMAT
b. Dependent Variable: GPA

Coefficients
a

Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant)
-1.700 .727 -2.338 .031
GMAT
.008 .001 .809 5.831 .000
a. Dependent Variable: GPA


BUSI 6220 FALL 2012 HW1 SOLUTIONS
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1.3. Simple Regression in MINITAB.

1.3.1. Start MINITAB 16 for Windows, available from the Statistics menu of the standard COB
PC configuration. Select File > Open Worksheet. Select to see Files of type: Excel. Open
GPAvsGMAT.xls.



1.3.2. Select Stat > Regression > Regression.


Select OK. This will produce the output:

Regression Analysis: GPA versus GMAT

The r egr essi on equat i on i s
GPA = - 1. 70 + 0. 00840 GMAT


Pr edi ct or Coef SE Coef T P
Const ant - 1. 6996 0. 7268 - 2. 34 0. 031
GMAT 0. 008399 0. 001440 5. 83 0. 000

S = 0. 435014 R- Sq = 65. 4% R- Sq( adj ) = 63. 5%

Anal ysi s of Var i ance

Sour ce DF SS MS F P
Regr essi on 1 6. 4337 6. 4337 34. 00 0. 000
Resi dual Er r or 18 3. 4063 0. 1892
Tot al 19 9. 8400

BUSI 6220 FALL 2012 HW1 SOLUTIONS
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1.4. Simple Regression in SAS 9.3
Open SAS 9.3. IN the SAS environment, you will need to create a library called BUSI6220 and
convert the data file GPAvsGMAT.xls from Excel format to SAS format.

1.4.1. Double-click the yellow libraries icon. Right-click > New. Type BUSI6220 as the name of
the new library, and an appropriate folder location in the Path box. Click OK. Your new library
should now appear as a new yellow icon.


1.4.2. Import the Excel data file by selecting File >Import Data >MS Excel >Next. Find your
file and select it. Select BUSI6220 as the destination library and GPAVSGMAT as the Member
name.
1.4.3. Select Solutions >Analysis >Interactive Data Analysis. Select SAS data file
BUSI6220.GPAVSGMAT. Click Open.



1.4.4. Select Analyze >Fit. Specify GPA as the Y variable and GMAT as the X variable. Click
OK.













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The analysis results will appear as shown below.

GPA = GMAT
Response Di stri buti on: Normal
Li nk Functi on: I denti ty
Model Equati on
GPA = - 1. 6996 + 0. 0084 GMAT
400 500 600
GMAT
1. 5
2. 0
2. 5
3. 0
3. 5
G
P
A
Summary of Fi t
Mean of Response 2. 5000
Root MSE 0. 4350
R-Square 0. 6538
Adj R-Sq 0. 6346
Anal ysi s of Vari ance
Source
Model
Error
CTotal
DF
1
18
19
Sumof Squares
6. 4337
3. 4063
9. 8400
Mean Square
6. 4337
0. 1892
F Stat
34. 00
Pr >F
<. 0001
Type I I I Tests
Source
GMAT
DF
1
Sumof Squares
6. 4337
Mean Square
6. 4337
F Stat
34. 00
Pr >F
<. 0001
Parametri c Regressi on Fi t

Curve

Degree(Pol ynomi al )
1
Model
DF
1
Mean Square
6. 4337
Error
DF
18
Mean Square
0. 1892

R-Square
0. 6538
F Stat
34. 00
Pr >F
<. 0001


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1.5b. Find the LSE solution for b
0
, b
1
, using Excel Solver (Excel 2010).

1.5.1. Start by setting up an Excel worksheet where the squared residuals are calculated. Use
arbitrary values for b
0
and b
1
(the arbitrary solution b
0
=-1.00 and b
1
=0.10 is shown below).
1.5.2. Fill in the rest of the worksheet, and place the sum of squared residuals in one of the cells:

To add solver in your Excel, follow similar steps as those involved in adding Data Analysis
capabilities. Solver will then be available under Excels Data tab.


1.5b.3. Set up a linear program using Solver (Data > Solver). Click Solve and keep the solution.
The results will appear in cells B23 (for b
0
) and B24 (for b
1
). Solver will replace the arbitrary
values for b0 and b1 with the LSE solution values.