1) The ship builders Council of America in Washington, D.C., publishes data about private
shipyards. Among the variables reported by this organization are the employment figures
(per 1000), the number of naval vessels under construction, and the number of repairs or
conversions done to commercial ships (in $ millions). Shown here are the data for the three
variables over a 7-year period. Use the data to develop a regression model to predict private
shipyard employment from number of naval vessels under construction and repairs or
conversions of commercial ships.
If simple linear regression were used, the scatterplot for each independent variable is above.
a) Do either or both of the above plots suggest a relationship?
Minitab output
Predictor Coef SE Coef T P
Constant 35.91 53.34 0.67 0.531
naval vessles 0.8291 0.5880 1.41 0.218
repairs of conversions 0.02189 0.01946 1.12 0.032
S = 18.8224 R-Sq = 64.8% R-Sq(adj) = 50.72%
Analysis of Variance
Source DF SS MS F P
Regression 2 2144.2 (E) 3.03 0.138
Residual Error 5 (D) 354.3
Total 7 3915.6
b) What is the equation of the line and define the pieces.
