Activity 5 Bus Stat

 Activity I – Last year, your firm collected data on each of its 107 division managers. The data contain growth figures for each manager’s division, the manager’s tenure with the firm, and the manager’s score on a leadership test, which was administered firmwide. These data are contained in the file attached.

  1. Run a regression designed to determine the effect of manager tenure on division growth.
  2. What role, if any, can the manager’s leadership test score play in the regression you ran for Part a? Explain.

Activity II – Use the data in the attached for this question.

You are working as an analyst for a large cable company that offers bundles of channels all across the United States. One of the bundles is the “basic package,” which includes network channels along with a few other basic cable channels. You are interested in learning how the price of this basic package influences the rate of subscriptions in a market. You have data on subscriptions per 1,000 local residents, price for the basic package, and average local household income. You also have data on local telecom labor costs per subscriber. You believe this last variable influences the local price but not subscriptions per se.

  1. Based on the data provided, write out an expression for the data-generating process for subscriptions per 1,000 local residents.
  2. Estimate the effect of basic package price on subscriptions per 1,000 local residents using OLS. Why might you distrust this result as being a causal effect?

2

>Sheet

1 6

3

4

9

0

3

5
9

2
9

4

13

1

3
4

16

7
26

7

4
10

5
9

9
25

7
11

10
4

0
14

13

2
1
11
9
26

5

91

3
2
6
6

8

5

4
10

12

3

4
19

7
19
46
2
7
41
7

40

9
8

7
24

3

13

2

3
14

9
24

0
5
20
6
15

5
11
24
7
8

7
4
54
9
21

5
13

6
13

1
5
9
6
25

1
22
11
4
9

4
18

6
16
41
12
27

10
25

9
27

8
18

3
15

1
14
14
11
13
60
11
27

8
19
54
1
13
20
7
21

5
12

3
5
6
7
11

6

66

7
20

8
10
20
9
8

7
11

2
2
25
7
18

7
18

9
7

7
30

5
10

7
12
67
7
8
55
3
17
17
9
17

10
23
104
8
24

5
6
27
9
22
67
6
26
99
12
22
94
5
24
75
6
5
30
4
28
101
2
10

6
9

11
24

9
7
101
2
21
11
5
28

2
11
102
2
21
60
1
2
11
10
11
101
10
24
79
9
19
100
6
13
94
14
18
107
2
25
58
2
6

Growth Tenure Test Score
4 6 14
7 6

3
16 1

9
5 4

8
26 1

0
25 13
86
89
17
24 83
41
11 59
10
91
79
27
96
46
32
-1 40
98
30
12
23 66
42
20 102
19 50
18
21
74
54
22
15 60
58
33
107
67
56
57
64
94
28
97
77
73
78
70
75
104
61
34
55
29
47
90
100
85
101
99
95
52
92
36
88
-2
81
51
72

Sheet1

Subs per 1000
Price
Income
Labor

440.7088560406
41.9736426734
67.867
12

475.0794335609
41.4217389268
64.549
6

426.013408628
36.224901438
53.664
6

437.3416206739
45.6521034457
60.429
12

424.3132452812
40.6073742135
52.669
8

405.8547973626
29.8266328938
60.895
6

392.3133086757
40.3683847793
61.103
15

477.0864376661
50.3749062777
65.837
12

487.1057145355
49.3809524226
56.82
8

488.8287286504
50.3002881084
68.027
9

489.1651805929
46.8303634322
55.183
8

517.7953709658
48.8980618276
62.407
6

508.5574656594
57.2917442766
66.807
13

455.5854771951
48.6299128659
62.806
12

442.4767970965
49.9781328494
53.608
13

452.0480126306
44.1163354384
59.35
11

505.8553431506
48.0017238584
64.845
7

424.0854643019
43.587410717
53.561
12

450.9913706579
49.8445617763
57.924
13

440.1421516895
49.6698586149
64.123
14

458.4030341013
38.5660056836
60.007
6

524.0989899155
50.3169983193
67.197
7

449.6943836438
44.277397274
52.03
9

473.3537491048
44.8719581841
63.122
7

440.6714647857
38.6295774643
63.894
6

460.3150733765
47.3636788961
56.133
12

463.3133672025
40.4573945337
68.569
7

483.3185747802
53.26842913
64.708
13

485.182586227
45.0945977045
63.615
6

455.6776429492
53.6777738249
61.611
15

444.9937570251
37.2276261708
54.628
6

458.1288704425
45.7286450737
60.757
11

455.5963424942
49.2550570824
68.066
14

542.7305048484
54.3710841414
60.504
5

464.580054209
44.3266757015
55.62
6

451.3592228654
48.7102038109
62.098
15

501.7435013321
45.484250222
66.838
6

496.0710398957
52.3838399826
58.768
10

528.0587312932
52.3894552155
62.722
6

503.9196202184
54.5032700364
56.9
9

447.3272048757
42.927534146
55.762
10

472.0317233279
50.3032872213
57.212
12

467.9481011125
51.1880168521
51.82
12

512.8771417729
56.2321902955
65.484
11

462.8304808295
43.1750801383
52.78
5

457.3451212344
51.5681868724
50.936
15

452.2986256655
49.5616042776
64.929
15

403.7495936667
42.1057656111
61.115
14

457.4643150574
38.8492191762
67.369
5

439.6837280845
42.2569546808
49.142
7

427.1804167438
38.3369027906
53.159
9

436.1152505275
45.9728750879
63.278
14

463.4571323993
52.7301887332
54.076
14

469.2879976081
52.2009996014
54.082
12

469.6511059452
44.2333509909
70.251
7

463.3870350382
39.5905058397
66.844
7

540.5173261432
55.1742210239
54.472
7

494.7101661845
55.8745276974
59.463
13

519.1608018812
63.3934669802
61.8
15

449.3304619219
45.9252436536
60.779
10

426.4762936441
43.6215489407
60.747
14

470.9543456424
44.0927242737
54.398
7

486.1558391561
53.0344731927
52.949
11

428.2706986331
48.8472831055
56.187
15

475.3330935213
56.7250155869
62.983
15

450.2224818009
46.5719136335
59.791
13

462.3126544098
40.2769424016
57.651
6

485.3413950121
56.4193991687
62.825
15

384.7280268104
42.4148378017
54.239
15

460.0327307913
50.9234551319
67.492
13

424.4351346863
40.5866891144
51.915
11

441.0487153365
39.5666192227
49.649
7

459.7077877482
43.7736312914
50.066
7

503.7665327286
53.2754221214
65.114
10

537.3140167077
52.9125027846
67.839
5

428.3412425837
44.554873764
67.012
15

444.8506977973
37.7772829662
57.187
6

466.6000753127
46.9211792188
52.073
9

424.279358431
41.5090597385
57.225
10

455.627635612
55.5414392687
51.379
15

493.2373910226
51.2605651704
64.674
12

476.5030928596
41.1326821433
67.707
6

433.9799887336
35.0121647889
61.907
5

518.6142562966
48.7837093828
68.912
5

477.0363681631
50.1073946938
63.392
10

519.3980671875
54.0525111979
67.083
11

455.0285791075
44.5735965179
50.587
9

434.2688435389
36.1181405898
52.56
5

454.4045715461
48.0857619243
55.89
11

475.8695754624
45.0787625771
63.397
6

452.4523826313
46.7097304386
53.194
12

422.5947251083
36.0369541847
59.373
8

456.9028191799
41.9613031967
65.135
8

398.572163764
36.8626939607
60.396
10

416.4805601597
37.7522600266
52.967
7

462.1727124997
40.5616187499
58.803
7

475.0905822353
47.3782637059
54.821
9

506.0490929035
50.9326821506
69.453
9

459.4490198506
46.2058366418
55.214
9

542.0293132446
61.9338855408
58.426
10

455.5305571929
37.3632595322
64.351
6

504.2161786654
47.7321964442
62.823
7

455.8070895093
42.5020149182
60.795
8

468.7930456807
49.6353409468
54.981
10

407.862593687
37.9209322812
69.337
10

388.1759727087
33.2751621181
51.525
10

478.7805062634
40.4940843772
65.816
5

372.619441888
38.295073648
51.849
14

459.2343690548
48.1525615091
67.319
12

419.9634727525
42.9014121254
58.555
11

492.1801672348
49.5315278725
68.991
11

418.7865803424
41.7089300571
55.533
12

491.0079191592
46.1201531932
57.287
6

476.9268645861
49.096977431
64.345
10

426.2766254924
48.6529375821
63.359
15

452.4921531259
47.8768588543
52.231
13

468.735423581
49.2739039302
67.092
13

423.3410046392
39.1605007732
58.378
9

457.1469203077
53.1741533846
53.102
14

433.2557232623
51.2229538771
52.918
15

417.396359144
41.049226524
59.101
13

465.0585272158
38.206254536
66.821
5

482.8881376639
42.9571896107
60.145
5

381.4898902764
33.4603150461
54.728
9

461.6202158813
49.6138693135
61.937
11

418.0751400598
39.57119001
69.648
13

479.6254035064
43.7855672511
61.912
7

397.4317606383
35.0151267731
55.341
9

485.3607692117
45.7687948686
69.748
7

423.023869745
39.9003116242
54.622
8

422.0467217079
31.9042869513
54.621
5

444.4458418464
38.9228069744
58.909
7

434.2189267393
41.2969877899
55.437
9

473.3161115408
43.3971852568
61.933
6

445.8169350347
50.4628225058
63.04
14

426.1656260658
40.6241043443
63.421
12

490.5561512084
43.3355252014
59.543
5

416.5152045201
36.85236742
63.401
9

494.6223731382
47.366895523
62.421
6

448.8182530727
46.2002088455
68.617
11

537.0895936149
48.9237656025
66.547
5

410.0478948848
35.8449824808
64.978
10

526.6479534223
55.9913255704
67.7
10

430.130534054
45.7474223423
52.646
12

471.4404788618
56.8244131436
50.494
14

501.7190322921
53.6058387154
70.084
13

424.1284307298
36.336738455
53.108
7

462.510090752
42.274681792
67.862
8

453.105811728
42.8154686213
62.213
8

441.1548315591
43.1966385932
54.975
8

396.4919676141
32.828661269
54.52
9

456.2877384373
49.6481230729
68.399
15

432.5143669935
39.4290611656
57.94
8

476.7206458753
48.8086076459
50.869
8

496.0396506732
47.8876084455
63.714
6

493.3903821198
43.7272303533
55.027
5

419.7498283034
42.4028047172
60.333
13

500.2342312684
50.9283718781
61.664
9

519.0706378846
50.8072729808
64.227
6

467.8400159222
43.7000026537
63.64
6

480.9888718536
39.9969786423
66.007
5

496.37747115
50.641578525
61.528
10

427.1513732147
39.9473955358
55.467
9

472.3866942667
48.1747823778
50.338
8

445.807501324
40.906583554
63.368
7

529.4489974771
52.8619995795
68.277
9

427.8311595969
44.1926932661
58.675
13

441.1062785972
45.3230464329
54.168
11

489.9268080116
49.6421346686
57.074
8

423.8769483297
45.9034913883
52.456
12

423.6237309531
40.4201218255
54.103
11

442.3048418923
42.5984736487
63.714
11

472.6381136933
54.3806856155
62.354
15

379.0955200105
39.1510866684
60.189
14

474.8429762418
54.3533293736
61.723
13

400.7194357104
38.9947392851
53.751
13

477.6011899566
42.8793649928
66.325
7

403.3158446321
34.0228074387
52.179
7

461.700837385
40.8784728975
57.43
5

480.1768286261
50.2601381043
50.616
8

453.0300655428
49.3253442571
55.078
14

478.0256816111
42.7854469352
60.313
6

398.9652488713
42.4490414786
51.271
14

457.1494159235
50.6027359872
67.533
14

483.4363334374
55.4070555729
55.994
12

486.2939530951
44.0629921825
52.916
6

370.851438964
38.1420731607
51.999
15

405.9808525392
38.1719754232
70.949
12

437.2217073559
45.7352845593
61.81
12

451.3719343488
40.5894890581
54.835
5

451.1899334197
50.89915557
49.795
15

461.2608453011
48.0596408835
51.903
11

482.1830138882
49.531835648
59.992
10

432.4264623995
38.8924103999
65.072
8

514.3450944283
49.6426824047
66.489
5

416.7543827634
38.1695637939
68.737
12

454.580872109
51.3263120182
55.623
15

447.5880396763
38.0676732794
55.182
5

498.3487933412
51.0859655569
58.833
8

449.814686443
45.6317810738
63.024
10

479.0455544693
42.7977590782
54.259
6

423.4818154371
39.9414692395
63.833
11

412.1426444494
36.6411074082
61.296
9

425.3230037749
36.9745006292
52.476
6

460.2404760631
46.7007460105
68.036
10

478.3965686596
40.4150947766
60.906
5

512.7050302139
49.9815050356
57.816
7

506.3577401063
53.8054566844
59.525
10

425.3642908894
41.5358818149
68.149
11

492.3879050306
59.8521508384
54.275
14

523.8199278713
50.5939879785
67.256
8

467.6369845024
45.2064974171
66.398
10

413.6776967544
42.9941161257
64.713
14

444.4216102335
38.3892683723
55.086
5

461.7966543773
53.2279423962
54.429
13

504.4381171359
44.641852856
70.587
6

533.6265853819
55.935930897
69.011
10

425.6497289308
47.7874548218
53.925
15

447.2054101853
52.6335683642
53.404
15

455.2392377537
53.046372959
65.961
15

404.037651839
31.3747753065
54.789
7

467.8131462369
47.5645243728
52.426
10

470.1276946402
49.51578244
51.033
10

449.7165248751
45.1755874792
53.663
9

447.2107924601
50.1037987434
49.588
12

435.8961795015
40.2090299169
66.642
11

450.9909966373
46.4433327729
59.331
12

421.8467039188
35.7844506531
50.14
6

468.5864517872
44.8769086312
57.325
7

418.6925325381
42.3314220897
70.704
12

439.3146550066
33.6174425011
62.61
5

464.8225483872
45.9112580645
50.355
9

414.6686329003
46.4789388167
51.795
15

435.8472083564
47.0220347261
52.715
12

457.1433006935
40.9560501156
66.407
6

458.9141682594
42.5220280432
59.782
9

479.6872016736
48.5432002789
60.428
10

512.5798510705
47.5259751784
64.424
5

463.3355918448
52.0892653075
55.8
13

442.7725280951
50.6000880158
67.172
15

454.1913320483
42.0175553414
51.086
8

445.8711614613
47.8113602435
60.003
14

476.6797617904
46.7129602984
64.402
9

509.1485902181
55.1860983697
70.032
11

449.7843498332
49.7150583055
56.494
12

439.7286992614
45.1222832102
55.995
13

447.5955456619
48.1710909436
52.569
13

479.0418562111
55.9216427019
60.512
15

424.1577107837
45.9709517973
61.332
14

452.6748430811
41.8278071802
49.708
5

446.2972997905
37.5525499651
62.982
7

432.9893929739
44.2627321623
62.413
13

425.7505608763
41.8304268127
65.768
12

424.8970350698
37.5483391783
65.607
8

469.5451324078
48.554022068
59.221
9

423.7235763439
43.2374293906
59.299
14

369.4439512029
35.1813252005
68.356
15

442.5367815951
40.8837969325
51.234
7

512.308080809
55.1886801348
64.176
10

482.2746485314
53.5341080886
56.07
11

472.7297393989
40.2026232331
55.514
5

465.2472806874
43.5133801146
67.167
9

474.6769171533
47.9813195255
61.789
10

487.5959692449
48.8758282075
52.341
7

517.6538900974
51.4981483496
66.665
6

491.1074654101
45.8914109017
56.759
7

446.1241641662
41.360527361
66.961
10

474.093364936
55.8855608227
54.78
15

450.1016749661
42.167779161
64.095
8

449.3841443731
41.0753573955
49.932
5

430.218019339
40.6891698898
66.083
12

470.879442329
41.8644070548
67.693
7

435.1151862846
40.6451977141
68.244
10

420.135253392
40.6032088987
65.516
11

445.9559329017
49.4624888169
61.181
13

452.8227664146
50.6757944024
53.768
15

420.2913057227
32.5162176204
54.194
5

466.2945989111
52.8422664852
65.241
15

459.0844851968
50.4315808661
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