Question

A random sample of ten professional athletes produced the following data. The first row is the number of endorsements the athlete has and the second row is the amount of money made (in millions of dollars) by the athlete.    If a professional athlete did 6 endorsements, what could they expect to profit according to the regression equation? Round to one decimal point.

Number of Endorsements	0	3	2	1	5	5	4	3	0	4
Profit (in Millions)	2	8	7	3	13	12	9	9	3	10

Answer 1

Solution:

We can use the excel regression data analysis tool to find the answer to the given questions. The excel steps are:

Enter the data in excel.

Click on Data > Data analysis > Regression > Ok

Input Y range: Select all the data under Number of Endorsements including label

Input X range: Select all the data under Profit (in Millions) including label

Mark the labels

Choose the output range and the output is given below:

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.979
R Square	0.958
Adjusted R Square	0.952
Standard Error	0.836
Observations	10
ANOVA
	df	SS	MS	F	Significance F
Regression	1	126.805	126.805	181.311	0.000
Residual	8	5.595	0.699
Total	9	132.4
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	2.2336	0.478	4.670	0.002	1.131	3.337
Number of Endorsements	1.9875	0.148	13.465	0.000	1.647	2.328

Therefore, the regression equation is:

 If a professional athlete did 6 endorsements, what could they expect to profit according to the regression equation?

Answer: