The Wall street journal conducted a study of basketball spending at top colleges. A portion of the data showing the revenues ($millions), percentage of wins, and the coach's salary ($million) for the 39 of the country's top basketball programs follows (The Wall Street Journal, March 11-12, 2006).
| 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
|
Questions:
A) Develop the estimated regression equation that can be used to predict the coachs salary given the revenue generated by the program and the percentage of wins.
B) Use the F test to deterine the overall significance of the relationship. What is your conclusion at the 0.05 level of significance?
C) Use the T test to determine the significance of each independent variable. What is your conclusion at the 0.05 level of significance?