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1. Given the information in Exercise 15.13, deter- mine the linear regression equation describing January- May burned acreage in Florida as a function of January- May rainfall in the state, then identify and interpret the slope, the coefficient of correlation, and the coefficient of determination. At the 0.10 level of significance, could the population slope and the population coefficient of cor- relation be zero? Determine the 90% confidence interval for the population slope.
2. Computer database GROWCO describes the char- acteristics of 100 companies identified by Fortuneas the fastest growing. Two of the variables listed are revenue and net income (millions of dollars) for the most recent four quarters. Determine the linear regression equation describing net income as a function of revenue, then identify and interpret the slope, the coefficient of correla- tion, and the coefficient of determination. At the 0.05 level of significance, could the population slope and the population coefficient of correlation be zero? Determine the 95% confidence interval for the population slope.
Source: "Fortune's 100 Fastest-Growing Companies," Fortune, September 4, 2000, pp. 142-158.
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