Question
The Farr-Kroger Classic is a women's professional golf tournament played each year in Ohio. Listed below are the total purse winnings (the amount of money
The Farr-Kroger Classic is a women's professional golf tournament played each year in Ohio. Listed below are the total purse winnings (the amount of money that is distributed to the top golfers) and the prize for the winner for the 15 years from 2006 through 2020. The operators of this golf tournament believe that there is a relationship between the purse winnings and the prize. There is also a belief that both of these are increasing over time.
Year | Purse Winnings | Prize |
2006 | $225,000 | $33,750 |
2007 | $275,000 | $41,250 |
2008 | $325,000 | $41,250 |
2009 | $325,000 | $48,750 |
2010 | $350,000 | $52,500 |
2011 | $400,000 | $60,000 |
2012 | $450,000 | $67,500 |
2013 | $500,000 | $75,000 |
2014 | $500,000 | $75,000 |
2015 | $575,000 | $86,250 |
2016 | $700,000 | $105,000 |
2017 | $800,000 | $120,000 |
2018 | $800,000 | $120,000 |
2019 | $1,000,000 | $150,000 |
2020 | $1,000,000 | $150,000 |
In answering these questions, you must use the correct independent and dependent variables.
a) Suppose that the prize is a function only of time. Using simple linear regression, develop a projection for the amount of the prize for the winner for the year 2021 based on the information provided. Identify the independent and dependent variables you are using considering the problem statement.
b) Using simple linear regression, develop a projection for the amount of the prize for the winner for the year 2021 based only on the relationship between the prize and the purse winnings. From the $1,000,000 Purse Winnings in 2020, the Classic tournament committee has and will continue to increase the purse winnings $25,000 per year for the next five years. Identify the independent and dependent variables you are using considering the problem statement.
c) Would you use either of the methods from a) or b) to project the prize for the winner for 2021? Explain your answer, including the key factors that we studied that should be considered in making this decision.
PLEASE INCLUDE GRAPH
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