Unit 4 [GB513: Business Analytics] 1 of 4 Unit 4: Assignment This Assignment requires you to use Excel in all three questions. Make sure you explain your answers and provide the regression output tables for Questions 1 and 2. Make sure to use the Unit 4 Assignment template from Course Resources when you turn in your answers. Question 1 Shown below are rental and leasing revenue ﬁgures for ofﬁce machinery and equipment in the United States over a 7-year period according to the U.S. Census Bureau. Use this data and the regression tool in the data analysis toolpack to run a linear regression. Based on the formula you get from the regression output, answer the following questions: a) What is the forecast for the rental and leasing revenue for the year 2011? b) How confident are you in this forecast? Explain your answer by citing the relevant metrics. Year Rental and Leasing ($ millions) 2004 5,860 2005 6,632 2006 6,543 2007 5,952 2008 5,732 2009 5,423 2010 4,589 Question 2 Suppose a researcher gathered survey data from 19 employees and asked the employees to rate their job satisfaction on a scale from 0 to 100 (with 100 being perfectly satisﬁed). Suppose the following data represent the results of this survey. Assume that relationship with their supervisor is rated on a scale from 0 to 50 (0 represents a poor relationship and 50 represents an excellent relationship); overall quality of the work environment is rated on a scale from 0 to 100 (0 represents poor work environment and 100 represents an excellent work environment); and opportunities for advancement is rated on a scale from 0 to 100 (0 represents no opportunities and 100 represents excellent opportunities). Answer the following questions: A) What is the regression formula based on the results from your regression? Unit 4 [GB513: Business Analytics] 2 of 4 B) How reliable do you think the estimates will be based on this formula? Explain your answer by citing the relevant metrics. C) Are there any variables that do not appear to be good predictors of job satisfaction? How can you tell? D) If a new employee reports that her relationship with her supervisor is 40, rates her opportunities for advancement to be at 30, finds the quality of the work environment to be at 75, and works 60 hours per week, what would you expect her job satisfaction score to be? Job satisfaction Relationship with supervisor Opportunities for advancement Overall quality of work environment Total hours worked per week 55 27 42 50 52 20 35 28 60 60 85 40 7 45 42 65 35 48 65 53 45 29 32 40 58 70 42 41 50 48 35 22 18 75 55 60 34 32 40 50 95 40 48 45 40 65 33 11 60 38 85 38 33 55 47 10 5 21 50 62 75 37 42 45 43 80 37 46 40 42 50 31 48 60 46 90 42 30 55 38 75 36 39 70 43 45 20 22 40 42 65 32 12 55 53 Question 3 Investment analysts generally believe the interest rate on bonds is related to the prime interest rate for loans. Use the following data to construct a scatter graph and then fit a regression line to the data. Report the regression formula and the r-squared values from the chart (right click on the data points, select Add Trend line, and select options to show these metrics). Do you think the bond rate can be predicted by the prime interest rate? Justify your answer using the relevant metrics. Unit 4 [GB513: Business Analytics] 3 of 4 Prime interest rate Bond rate 5.0% 28.0% 12.0% 48.0% 9.0% 32.0% 1.5% 4.0% 0.4% 7.0% 11.0% 36.0% 6.0% 28.0% 2.0% 10.5% Directions for submitting your Assignment Make sure to use the Unit 4 Assignment template from Course Resources when you turn in your answers. Submit your Assignment to the Unit 4 Dropbox. Grading Rubric Your Assignment will be graded based on the following breakdown. Unit 4 Assignment Criteria Points Possible Points Earned Question 1a 2011 forecast for rental and leasing revenue is accurate. 6 Question 1b Appropriate analysis of the reliability of forecast based on this formula. 6 Question 2a Correct regression formula. 5 Question 2b Appropriate analysis of the reliability of estimates based on this formula. 5 Unit 4 [GB513: Business Analytics] 4 of 4 Question 2c Appropriate analysis of whether there are any variables that do not appear to be good predictors. 5 Question 2d Correct expected job satisfaction score. 5 Question 3a Constructed a scatter graph and included a regression line. 6 Question 3b Appropriate analysis of whether a bond rate could be predicted by the prime interest rate. 7 Properly completed assignment template. 5 Total 50