Analyzing Editor Bonuses and Book Series Performance A multinational publishing house is looking to adjust its bonus structure for editors based on the performance of the books they manage. The company aims to explore the relationship between the performance of a book series and the bonuses awarded to editors. The data from the previous year in the table below: detailing the bonuses received by editors and the yearly percentage increase in sales for each book series they managed. These variables are labeled as Bonuses and SalesGrowth, respectively.

a) Construct a scatter plot for the editors' bonuses (variable Bonuses) against the yearly sales growth (variable Sales Growth). Discuss any observable trends and relationships. Are any outliers or high leverage points present in the dataset?

b) Fit the model below and document your findings. = 0 + 1 +

c) Generate the corresponding residual plot (residuals versus predicted values). Evaluating this plot, does the estimated model seem adequate?

d) Estimate a revised model, now incorporating the adjusted variables Bonuses-Adj and SalesGrowth-Adj, which exclude any data points where editors' bonuses seem disproportionately high relative to the sales growth of their book series. In your findings, you are expected to identify nine data points that are disproportionately high; include these in your response.

e) Create a histogram of the residuals from your regression analysis in part d). Does this model comply with the assumption of approximate normality?

f) What are the measurement units of the slope coefficient b1 in the updated regression model from part d)? How does an increase of 1 percentage point in sales growth affect the average bonus of editors?

g) Compute and elucidate the 2 and Adjusted 2 values for both regression models (parts b and d).

h) Determine a 95% confidence interval for the regression slope 1 in part d).

i) Perform hypothesis testing for the slope coefficient 1 in the model fitted in part b). State your null and alternative hypotheses, calculate the test statistic, and interpret the results.

Bonuses ($)	SalesGrowth (%)
56940	14.1
52052	10.9
58344	23.5
30056	5.9
71136	13.8
59540	20.0
56056	16.4
56888	16.3
64324	10.5
43316	26.3
29484	25.9
48516	26.8
69628	14.8
48724	22.3
104572	56.3
82420	12.6
47060	20.4
55016	1.9
47944	19.9
63440	15.4
53144	38.7
39468	16.4
73528	24.4
54132	15.6
87776	14.4
155116	19.0
60320	16.1
199888	12.1
24752	16.2
77584	18.4
53248	14.2
82836	14.9
22204	12.4
43108	17.1
41444	16.9
30004	18.1
69784	10.9
92248	19.3
36868	18.3
44720	18.4
69472	13.8
26832	13.7
48412	12.7
42380	15.1
87412	16.5
29536	10.2
40300	19.6
61776	12.8
40664	15.9
60840	17.3
76388	8.5
47632	16.4
55640	19.5
46488	19.2
43108	15.9
40560	19.9
121004	28.1
37284	25.0
71136	15.0
105456	12.6
62140	20.3
13312	22.7
40300	14.8
73164	13.2
28236	10.3
45448	17.7
66924	10.0
64896	15.6
45500	6.8
48100	12.4
41496	13.1
39520	15.8
31200	12.8
51532	15.3
81640	0.5
47372	16.5
70720	15.1
36400	13.0
38532	11.1
57044	8.9
49556	17.5
22932	15.9
30940	14.2
55484	9.3
67496	9.5
93496	15.5
215436	14.4
69472	11.1
91000	15.9
47424	16.4
98384	8.6
43316	24.6
59384	15.4
60268	16.9
66716	7.2
109668	11.6
54028	26.4
51584	21.4
65156	19.2
37492	15.1
70252	9.0
72332	9.4
64740	19.0
80600	3.5
111800	22.1
95992	10.9
29796	15.1
345280	10.2
49868	17.3
31824	33.3
94640	22.8
73372	11.1
53352	12.4
66924	20.9
41600	6.7
57980	7.1
84812	11.8
99320	14.0
51792	10.1
47736	6.4
65572	12.4
54756	17.6
63492	15.1
90376	23.6
163384	35.7
98800	23.2
22204	12.4
88400	44.4
18720	2.1
23868	18.4
69680	16.1
37908	15.1
11596	22.7
109252	23.4
56264	25.7
92612	27.0
41132	19.9
108784	43.7
81796	16.4
54340	11.6
88088	24.8
23556	26.2
58760	44.5
69368	22.3
69888	22.3
82420	35.1
101192	13.1
84188	11.0
84240	19.4
50284	28.5
74412	43.9
64012	26.8
40040	15.7
82888	15.0
81536	28.2
51740	15.4
56004	20.0
60372	42.2
72852	19.6
58604	16.2
159536	21.5
37960	29.5
37908	22.6
584116	22.9
49348	13.0
189592	7.8
78104	48.1
41964	18.0
37076	18.0
77428	21.7
38272	21.3
63752	26.9
28236	30.5
770744	19.4
46280	15.6
84604	19.4
125216	29.1
116896	40.8
40924	13.7
24648	11.1
22828	10.8
24180	5.1
30888	12.3
35776	7.4
31564	6.2
32968	12.7
27664	10.6
22932	7.4
36088	12.6
27040	12.8
39364	2.9
34736	13.5
41756	10.7
26000	11.9
28704	12.9
21424	10.1
57200	7.3
49868	14.6
17316	13.8
26156	8.9
23296	14.0
38064	12.9
37440	14.5
42016	14.7
48360	9.0
27300	15.5
34216	12.1
28860	13.7
32552	14.4