Applicants for a Particular Job, Which Involves Extensive Travel in Spanish

question 10

Essay

Applicants for a particular job, which involves extensive travel in Spanish speaking countries must take a proficiency test in Spanish. The sample data below were obtained in study of the relationship between the numbers of years applicants have studied Spanish ( $x )$ and their score on the test $( y )$ .
$\begin{array}{lrrrrrrrrrr}\hline x & 3 & 4 & 4 & 2 & 5 & 3 & 4 & 5 & 3 & 2 \\\hline y & 57 & 78 & 72 & 58 & 89 & 63 & 73 & 84 & 75 & 48 \\\hline\end{array}$

The regression equation $\hat { y } = 31.55 + 10.90 x$ was obtained. Construct a residual plot for the data.

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Definitions:

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.

Industry Concentration

A measure of the extent to which a small number of firms dominate the total production, sales, or market share in an industry.

Elastic

A measure in economics indicating how much the demand or supply of a good changes in response to a change in price.

Marginal Revenue

The extra revenue gained by selling an additional unit of a product or service.