1. Before looking at the data, use intuition to describe each variable's probable predictive power and direction of relationship with CLAIMS. 2. Calculate and analyze the correlation matrix. Explain some of the more significant correlations between the independent variables and CLAIMS, as well as between the independent variables themselves. 3. Perform a comprehensive regression analysis for CLAIMS. This includes calculation and analysis of graphs, p-values, coefficients of determination (R-), etc. 4. Identify the model that you feel best predicts CLAIMS. Justify the selection of this model from both conceptual and statistical viewpoints. This includes a verbal statement of the identified model that a "nonstatistician" could understand. 5. Is there a model that is almost as good as your first choice? If so, describe it. 6. State several managerial recommendations that you would make based on the model identified in number 4. 7. Give a forecast of next month's workers' compensation claims if the following values are given: MALE SAFETY SALES PARTTM EMPLOYS .30 25.0 21.0 .51 164 Also give a 95 % prediction interval for CLAIMS. An acceptable formula for estimating this is given by: Y + SE' to-p-1; 025 , where Y is your predicted number of workers' compensation claims, SE is the standard error of the regression model (found just below R in the regression output), and to-p-1;.025 is a value from the t-distribution with probability of .025 (in one tail) and degrees of freedom of n-p-1 (number of observations - number of predictor variables in model - 1). You are allowed to assume a value of 2.042 for the value from the t-distribution. In preparing your report, make it clear that you understand the underlying analytical techniques that you are using (regression analysis). However, highlight the interpretation of your results and the likely managerial implications of your analysis for the management of Burger Max.Variable Name Description of Variable CLAIMS The number of workers' compensation injury claims. MALE The proportion of the work force that is male. SAFETY The dollar amount of expenditures on safety programs in thousands. SALES The dollar amount of gross sales in millions. PARTTM The proportion of the work force that is part-time. EMPLOYS The number of employees in thousands.