Using the preceding matrix data forbes 500 select a pair of

Question

Question: 1. Using the preceding matrix data (Forbes 500), select a pair of variables and run a simple regression. Then investigate the appropriateness of the model for the data using diagnostic tools for evaluating assumptions.

2. For the following data,

X                   Y

25              5

19              7

17             12

14             23

12             20

9              25

8              26

7              28

3              20

a Calculate the correlation between X and Y.

b Interpret the sign of the correlation.

c Interpret the square of the correlation.

d Plot the least-squares line.

e Test for a linear relationship:

(1) β₁ = 0

(2) r = 0

(3)An F test