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Part B

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The case is about who should bear the bulk of advertising expense. Attorney A says Attorney B should pay more since advertising dollars expended generated more WC cases.
Without doing descriptive analysis to make an inference, the data does support hypothesis that increased expenditures generated more WC cases over 42-month period. Hypothesis can be rejected for PI cases. However, month 24, 830 dollars was spent and 45 cases were generated. Week 15, 13605 was expended, yet they only generated 37 new cases. This shows there isn’t a causal relationship between the amount of money spent and the total number of cases generated.

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Doing the Descriptive Statistical Analysis for the LEGALADV Case… 1. Read pp. 559-561 and pp. 570-571 Statistics in Action. 2. Load the data from the LEGALADV file into Minitab. If you are having trouble loading the data set, see my Announcement on Data Sets for Minitab. 3. Using the Minitab Tutorials, as needed: run the scatter plots and simple regressions separately for New PI Cases on Adv. Exp. and New WC Cases on Adv. Exp. You should replicate the output on p. 571. 4. What do you see in the respective scatter plots? Are either the New PI Cases or the New WC Cases related to the Advertising Expenditures? 5. Copy and Paste your Minitab output into a Word document and include it as an Attachment. 6. For each of the simple regressions, write out the regression equation, the value of s, the standard error, and r squared, and provide their interpretations. Feel free to draw on the Week 6 Lecture to help with your interpretations.

I see a positive relationship between between the amount of money spent and the number of new PI cases, albeit over $150k, the number of new cases is small.

The results are surprising. I see a flat relationship between the amount of money spent and the number of

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