Data Analytics Question

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SPSS Problems for Grade
1. The following table shows assets and sales for 16 large travel corporations. Solve
the following questions by using assets as x variable (5 points).
Assets (in billions)
$7.8
9.8
7.0
6.0
4.1
6.6
5.3
4.3
3.6
4.2
2.8
4.6
4.3
3.3
2.8
1.5
Sales (in billions)
$9.2
8.9
8.4
8.0
6.5
6.4
6.2
5.8
5.5
5.4
4.7
4.4
4.3
3.9
3.9
3.7
Require:
a) Report the correlation coefficient (r) and the coefficient of determination (r2),
and explain what they are used for.
b) Build the least squares regression equation and explain the equation, particularly
the functions of x and y.
c) Create a regression plot of the x and y variables with the best fitting line and
explain their relationship.
2
Use 2022 Baseball Team data, let the games won be the dependent variable
and total team salary be the independent variable. Solve the following problems
(4 points):
Require:
a) Report the correlation coefficient (r) and the coefficient of determination
(r2), and explain what they measure.
b) Test the hypothesis that the two variables, games won and team salary are
independent of each other in the population at 5% significant level.
c) Build the least squares regression equation and explain the equation,
particularly the functions of x and y. How many additional wins will an
additional $10 million in salary bring?
b) Create a regression plot of the x and y variables with the best fitting line and
explain the relationship of the two variables.
3. Revisit the CEO salary and firm performance problem you did for SPSS 4. In
SPSS Assignment 4, you did a scatterplot to examine the relationship between
CEO salary in the airline and leisure industries and their respective firms’
performance measured by annual revenues. Examining the scatterplot, you
reported there was no linear pattern between CEO salary and firm performance.
In this exercise, you are asked to run a simple regression analysis and test if there
is any significant relationship between CEO salary and firm performance. In this
test, we assume CEO salary depends on firm performance. Make sure you define
the x and y variables accordingly (4 points).
Require:
a) Report the correlation coefficient (r) and the coefficient of determination
(r2), and explain what they measure.
b) Test the hypothesis that the two variables, CEO salary and firm performance
are independent of each other in the population at 5% significant level.
c) Build the least squares regression equation and explain the equation,
particularly the functions of the intercept and the slope.
d) Create a regression plot of the X and Y values with the best fitting line and
explain the relationship of the two variables visually.
4. Exercise.com (7 points)
The U.S. Senate first passed S. 1023, the “Travel Promotion Act of 2009” (TPA) in
September, 2009, it was later extended in 2014, and then extended in 2019. TPA calls for
the establishment of the Corporation for Travel Promotion as an independent nonprofit
corporation to promote leisure, sport, business and scholarly visits to the U.S. This Act
calls for the creation of the Corporation for Travel Promotion (now Brand USA) which
will allocate financial resources to promote the U.S. as an international destination.
Japan is targeted as one of the major countries for aggressive promotion by the Tourism
Industries Office in the Department of Commerce and Brand USA (the public and private
partnership responsible for marketing USA implemented by the Travel Promotion Act).
As a tourism market analyst specialized in Japan inbound travel to the U.S., you are very
interested in studying the movement of currency exchange rates between U.S. dollar and
Japanese yen and its impact on Japanese travel to the U.S., particularly the strengthening
of the dollar value against the Japanese yen. You want to research the impact, if any, of
currency exchange rate fluctuation on Japanese inbound arrivals to the U.S. in the last 20
months (from January 2021 to August 2022). To perform this study, you need to obtain
data from two sources. The first dataset for Japanese inbound arrivals in the US can be
collected from Japanese Tourism Board (JTB) website as follows:
From the above JTB main page, click Japanese Outbound Tourist Statistics.
Then scroll down the Japanese Outbound Tourist Statistics page, a green pop up Excel
data file appears on the right bottom of the screen for download.
Click and download the Excel file. You will first find monthly Japanese outbound tourist
departure statistics from January 2000 to August 2023 (estimated) on the top of the file
and then the annual Japanese outbound tourist departure statistics from 2000 to 2022 at
the end of the Excel sheet. The data reported the total Japanese outbound tourists by
month and by year as well as the total Japanese outbound tourists to many countries for
the reported period from 2000 – August 2023.
Data collection for monthly Japanese outbound tourists from January 2022 – August
2023. Scroll down the data file to 2022, start with January data for 14,754 Japanese
tourists to the U.S. and then complete data collection to August, 2023 (20 months).
The next step is to collect data for foreign exchange rates between Japanese Yen and US
dollar:
Visit this foreign currency exchange website that keeps historic record from 2017 and
converts exchange transactions. The following explains how to collect the exchange rate
data.
Keep the default US Dollar (USD) as the base currency in the left box
• Keep the default Convert amount as 1 (see illustration below)
• Use the pull-down menu in the right box to select Japanese Yen (JPY)
• Change the default date (today’s date) to 01/31/2022 in the date target (last
business day in the month).
• The AMOUNT target shows the exchange conversion rate automatically. The
exchange rate for January 31, 2022 was: 1 USD = 115.227 JPY.


Repeat the data collection process for exchange rate for the end of the month from
February 2022 to August 2023. (Note: we use the exchange rate recorded for the
end of the month for this study. However, in some months, the last trading day of
the month did not fall on the last calendar day, so collect the exchange rate for the
last business day of the month).
Please note: we can also use the monthly average exchange rate between the
two currencies. However, let’s use the end of the month exchange rate for
this assignment as practice.
Require:
a) Report the coefficient of correlation (r) and the coefficient of determination (r2), and
explain what they measure.
b) Build the least squares regression equation and explain the equation, particularly the
functions of the intercept and the slope.
c) Create a regression plot of the x and y variable with the best fitting line and explain
the visual display of the relationship between foreign exchange rate and Japanese
tourism arrivals in the U.S. in the last 20 months.
d) Write a brief paragraph to the Director of National Travel & Tourism Office (Brian
Beall is GWSB MTA alumnus) to explain if foreign exchange rate between $ and ¥
was an important factor in influencing Japanese travel to the U.S. in the last 20
months.
Appendix 1.
How do you interpret 1.0443E-09 or 7.61E+05 reported in SPSS Output Table?
When computation result generated by SPSS has many zeros to the left or right, such as
0.0000000010443, SPSS will simply shows the formula result as 1.0443E-09. This is not
an error message, rather it is the mathematical expression of 1.0443 x 10-09. When you
get a result similar like this from your regression analysis due to the squaring of the
variance, you know that you need to move the decimal point nine places to the left from
the current place. If the sign is a plus as in the second example 7.61E+05, the
mathematical expression is 7.61 x 105, you move the decimal point five places to the
right, so 7.61E+05 =761000.

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