|
Question: College football is big business, with coaches’ salaries, revenues, and expenses in millions of dollars. The file College Football contains the coaches’ pay and revenue for college football at 105 of the 124 schools that are part of the Division I Football Bowl Subdivision. (Data extracted from “College Football Coaches Continue to See Salary Explosion,” USA Today, November 20, 2012, p. 8C.)
a. Compute and interpret the coefficient of correlation, r.
b. At the 0.05 level of significance, is there a significant linear relationship between a coach’s pay and revenue?
Answer:
(a) r = 0.7903. There appears to be a strong positive linear relationship between the coaches’ salary and revenue. (b) t = 9.8243, p-value is virtually zero. Reject H0. At the 0.05 level of significance, there is a significant linear relationship between the coaches’ salary and revenue.
|
|
