# Activity 5 Bus Stat

Activity I – Last year, your firm collected data on each of its 107 division managers. The data contain growth figures for each manager’s division, the manager’s tenure with the firm, and the manager’s score on a leadership test, which was administered firmwide. These data are contained in the file attached.

1. Run a regression designed to determine the effect of manager tenure on division growth.
2. What role, if any, can the manager’s leadership test score play in the regression you ran for Part a? Explain.

Activity II – Use the data in the attached for this question.

You are working as an analyst for a large cable company that offers bundles of channels all across the United States. One of the bundles is the “basic package,” which includes network channels along with a few other basic cable channels. You are interested in learning how the price of this basic package influences the rate of subscriptions in a market. You have data on subscriptions per 1,000 local residents, price for the basic package, and average local household income. You also have data on local telecom labor costs per subscriber. You believe this last variable influences the local price but not subscriptions per se.

1. Based on the data provided, write out an expression for the data-generating process for subscriptions per 1,000 local residents.
2. Estimate the effect of basic package price on subscriptions per 1,000 local residents using OLS. Why might you distrust this result as being a causal effect?

## Sheet1

 Growth Tenure Test Score 4 6 14 6 7 63 3 16 19 5 4 48 9 26 100 3 25 13 5 9 86 2 9 89 4 17 13 1 24 83 3 4 41 11 16 59 7 26 107 4 10 91 5 9 79 9 25 27 7 11 96 10 4 46 0 14 32 -1 13 40 2 1 11 9 26 98 5 30 91 3 2 6 6 12 8 5 23 66 4 10 42 12 20 102 3 19 50 4 19 18 7 19 46 2 7 41 7 21 40 9 8 74 7 24 54 3 22 13 2 15 60 3 14 58 9 24 33 0 5 20 6 15 107 5 11 24 7 8 67 7 4 54 9 21 56 5 13 57 6 13 64 1 5 9 6 25 94 1 22 11 4 9 28 4 18 97 6 16 41 12 27 77 10 25 73 9 27 78 8 18 70 3 15 75 1 14 14 11 13 60 11 27 104 8 19 54 1 13 20 7 21 61 5 12 34 3 5 6 7 11 55 6 29 66 7 20 47 8 10 20 9 8 90 7 11 100 2 2 25 7 18 85 7 18 101 9 7 99 7 30 95 5 10 52 7 12 67 7 8 55 3 17 17 9 17 92 10 23 104 8 24 36 5 6 27 9 22 67 6 26 99 12 22 94 5 24 75 6 5 30 4 28 101 2 10 88 -2 6 9 11 24 81 9 7 101 2 21 11 5 28 51 2 11 102 2 21 60 1 2 11 10 11 101 10 24 79 9 19 100 6 13 94 14 18 107 2 25 58 2 6 72

## Sheet1

 Subs per 1000 Price Income Labor 440.7088560406 41.9736426734 67.867 12 475.0794335609 41.4217389268 64.549 6 426.013408628 36.224901438 53.664 6 437.3416206739 45.6521034457 60.429 12 424.3132452812 40.6073742135 52.669 8 405.8547973626 29.8266328938 60.895 6 392.3133086757 40.3683847793 61.103 15 477.0864376661 50.3749062777 65.837 12 487.1057145355 49.3809524226 56.82 8 488.8287286504 50.3002881084 68.027 9 489.1651805929 46.8303634322 55.183 8 517.7953709658 48.8980618276 62.407 6 508.5574656594 57.2917442766 66.807 13 455.5854771951 48.6299128659 62.806 12 442.4767970965 49.9781328494 53.608 13 452.0480126306 44.1163354384 59.35 11 505.8553431506 48.0017238584 64.845 7 424.0854643019 43.587410717 53.561 12 450.9913706579 49.8445617763 57.924 13 440.1421516895 49.6698586149 64.123 14 458.4030341013 38.5660056836 60.007 6 524.0989899155 50.3169983193 67.197 7 449.6943836438 44.277397274 52.03 9 473.3537491048 44.8719581841 63.122 7 440.6714647857 38.6295774643 63.894 6 460.3150733765 47.3636788961 56.133 12 463.3133672025 40.4573945337 68.569 7 483.3185747802 53.26842913 64.708 13 485.182586227 45.0945977045 63.615 6 455.6776429492 53.6777738249 61.611 15 444.9937570251 37.2276261708 54.628 6 458.1288704425 45.7286450737 60.757 11 455.5963424942 49.2550570824 68.066 14 542.7305048484 54.3710841414 60.504 5 464.580054209 44.3266757015 55.62 6 451.3592228654 48.7102038109 62.098 15 501.7435013321 45.484250222 66.838 6 496.0710398957 52.3838399826 58.768 10 528.0587312932 52.3894552155 62.722 6 503.9196202184 54.5032700364 56.9 9 447.3272048757 42.927534146 55.762 10 472.0317233279 50.3032872213 57.212 12 467.9481011125 51.1880168521 51.82 12 512.8771417729 56.2321902955 65.484 11 462.8304808295 43.1750801383 52.78 5 457.3451212344 51.5681868724 50.936 15 452.2986256655 49.5616042776 64.929 15 403.7495936667 42.1057656111 61.115 14 457.4643150574 38.8492191762 67.369 5 439.6837280845 42.2569546808 49.142 7 427.1804167438 38.3369027906 53.159 9 436.1152505275 45.9728750879 63.278 14 463.4571323993 52.7301887332 54.076 14 469.2879976081 52.2009996014 54.082 12 469.6511059452 44.2333509909 70.251 7 463.3870350382 39.5905058397 66.844 7 540.5173261432 55.1742210239 54.472 7 494.7101661845 55.8745276974 59.463 13 519.1608018812 63.3934669802 61.8 15 449.3304619219 45.9252436536 60.779 10 426.4762936441 43.6215489407 60.747 14 470.9543456424 44.0927242737 54.398 7 486.1558391561 53.0344731927 52.949 11 428.2706986331 48.8472831055 56.187 15 475.3330935213 56.7250155869 62.983 15 450.2224818009 46.5719136335 59.791 13 462.3126544098 40.2769424016 57.651 6 485.3413950121 56.4193991687 62.825 15 384.7280268104 42.4148378017 54.239 15 460.0327307913 50.9234551319 67.492 13 424.4351346863 40.5866891144 51.915 11 441.0487153365 39.5666192227 49.649 7 459.7077877482 43.7736312914 50.066 7 503.7665327286 53.2754221214 65.114 10 537.3140167077 52.9125027846 67.839 5 428.3412425837 44.554873764 67.012 15 444.8506977973 37.7772829662 57.187 6 466.6000753127 46.9211792188 52.073 9 424.279358431 41.5090597385 57.225 10 455.627635612 55.5414392687 51.379 15 493.2373910226 51.2605651704 64.674 12 476.5030928596 41.1326821433 67.707 6 433.9799887336 35.0121647889 61.907 5 518.6142562966 48.7837093828 68.912 5 477.0363681631 50.1073946938 63.392 10 519.3980671875 54.0525111979 67.083 11 455.0285791075 44.5735965179 50.587 9 434.2688435389 36.1181405898 52.56 5 454.4045715461 48.0857619243 55.89 11 475.8695754624 45.0787625771 63.397 6 452.4523826313 46.7097304386 53.194 12 422.5947251083 36.0369541847 59.373 8 456.9028191799 41.9613031967 65.135 8 398.572163764 36.8626939607 60.396 10 416.4805601597 37.7522600266 52.967 7 462.1727124997 40.5616187499 58.803 7 475.0905822353 47.3782637059 54.821 9 506.0490929035 50.9326821506 69.453 9 459.4490198506 46.2058366418 55.214 9 542.0293132446 61.9338855408 58.426 10 455.5305571929 37.3632595322 64.351 6 504.2161786654 47.7321964442 62.823 7 455.8070895093 42.5020149182 60.795 8 468.7930456807 49.6353409468 54.981 10 407.862593687 37.9209322812 69.337 10 388.1759727087 33.2751621181 51.525 10 478.7805062634 40.4940843772 65.816 5 372.619441888 38.295073648 51.849 14 459.2343690548 48.1525615091 67.319 12 419.9634727525 42.9014121254 58.555 11 492.1801672348 49.5315278725 68.991 11 418.7865803424 41.7089300571 55.533 12 491.0079191592 46.1201531932 57.287 6 476.9268645861 49.096977431 64.345 10 426.2766254924 48.6529375821 63.359 15 452.4921531259 47.8768588543 52.231 13 468.735423581 49.2739039302 67.092 13 423.3410046392 39.1605007732 58.378 9 457.1469203077 53.1741533846 53.102 14 433.2557232623 51.2229538771 52.918 15 417.396359144 41.049226524 59.101 13 465.0585272158 38.206254536 66.821 5 482.8881376639 42.9571896107 60.145 5 381.4898902764 33.4603150461 54.728 9 461.6202158813 49.6138693135 61.937 11 418.0751400598 39.57119001 69.648 13 479.6254035064 43.7855672511 61.912 7 397.4317606383 35.0151267731 55.341 9 485.3607692117 45.7687948686 69.748 7 423.023869745 39.9003116242 54.622 8 422.0467217079 31.9042869513 54.621 5 444.4458418464 38.9228069744 58.909 7 434.2189267393 41.2969877899 55.437 9 473.3161115408 43.3971852568 61.933 6 445.8169350347 50.4628225058 63.04 14 426.1656260658 40.6241043443 63.421 12 490.5561512084 43.3355252014 59.543 5 416.5152045201 36.85236742 63.401 9 494.6223731382 47.366895523 62.421 6 448.8182530727 46.2002088455 68.617 11 537.0895936149 48.9237656025 66.547 5 410.0478948848 35.8449824808 64.978 10 526.6479534223 55.9913255704 67.7 10 430.130534054 45.7474223423 52.646 12 471.4404788618 56.8244131436 50.494 14 501.7190322921 53.6058387154 70.084 13 424.1284307298 36.336738455 53.108 7 462.510090752 42.274681792 67.862 8 453.105811728 42.8154686213 62.213 8 441.1548315591 43.1966385932 54.975 8 396.4919676141 32.828661269 54.52 9 456.2877384373 49.6481230729 68.399 15 432.5143669935 39.4290611656 57.94 8 476.7206458753 48.8086076459 50.869 8 496.0396506732 47.8876084455 63.714 6 493.3903821198 43.7272303533 55.027 5 419.7498283034 42.4028047172 60.333 13 500.2342312684 50.9283718781 61.664 9 519.0706378846 50.8072729808 64.227 6 467.8400159222 43.7000026537 63.64 6 480.9888718536 39.9969786423 66.007 5 496.37747115 50.641578525 61.528 10 427.1513732147 39.9473955358 55.467 9 472.3866942667 48.1747823778 50.338 8 445.807501324 40.906583554 63.368 7 529.4489974771 52.8619995795 68.277 9 427.8311595969 44.1926932661 58.675 13 441.1062785972 45.3230464329 54.168 11 489.9268080116 49.6421346686 57.074 8 423.8769483297 45.9034913883 52.456 12 423.6237309531 40.4201218255 54.103 11 442.3048418923 42.5984736487 63.714 11 472.6381136933 54.3806856155 62.354 15 379.0955200105 39.1510866684 60.189 14 474.8429762418 54.3533293736 61.723 13 400.7194357104 38.9947392851 53.751 13 477.6011899566 42.8793649928 66.325 7 403.3158446321 34.0228074387 52.179 7 461.700837385 40.8784728975 57.43 5 480.1768286261 50.2601381043 50.616 8 453.0300655428 49.3253442571 55.078 14 478.0256816111 42.7854469352 60.313 6 398.9652488713 42.4490414786 51.271 14 457.1494159235 50.6027359872 67.533 14 483.4363334374 55.4070555729 55.994 12 486.2939530951 44.0629921825 52.916 6 370.851438964 38.1420731607 51.999 15 405.9808525392 38.1719754232 70.949 12 437.2217073559 45.7352845593 61.81 12 451.3719343488 40.5894890581 54.835 5 451.1899334197 50.89915557 49.795 15 461.2608453011 48.0596408835 51.903 11 482.1830138882 49.531835648 59.992 10 432.4264623995 38.8924103999 65.072 8 514.3450944283 49.6426824047 66.489 5 416.7543827634 38.1695637939 68.737 12 454.580872109 51.3263120182 55.623 15 447.5880396763 38.0676732794 55.182 5 498.3487933412 51.0859655569 58.833 8 449.814686443 45.6317810738 63.024 10 479.0455544693 42.7977590782 54.259 6 423.4818154371 39.9414692395 63.833 11 412.1426444494 36.6411074082 61.296 9 425.3230037749 36.9745006292 52.476 6 460.2404760631 46.7007460105 68.036 10 478.3965686596 40.4150947766 60.906 5 512.7050302139 49.9815050356 57.816 7 506.3577401063 53.8054566844 59.525 10 425.3642908894 41.5358818149 68.149 11 492.3879050306 59.8521508384 54.275 14 523.8199278713 50.5939879785 67.256 8 467.6369845024 45.2064974171 66.398 10 413.6776967544 42.9941161257 64.713 14 444.4216102335 38.3892683723 55.086 5 461.7966543773 53.2279423962 54.429 13 504.4381171359 44.641852856 70.587 6 533.6265853819 55.935930897 69.011 10 425.6497289308 47.7874548218 53.925 15 447.2054101853 52.6335683642 53.404 15 455.2392377537 53.046372959 65.961 15 404.037651839 31.3747753065 54.789 7 467.8131462369 47.5645243728 52.426 10 470.1276946402 49.51578244 51.033 10 449.7165248751 45.1755874792 53.663 9 447.2107924601 50.1037987434 49.588 12 435.8961795015 40.2090299169 66.642 11 450.9909966373 46.4433327729 59.331 12 421.8467039188 35.7844506531 50.14 6 468.5864517872 44.8769086312 57.325 7 418.6925325381 42.3314220897 70.704 12 439.3146550066 33.6174425011 62.61 5 464.8225483872 45.9112580645 50.355 9 414.6686329003 46.4789388167 51.795 15 435.8472083564 47.0220347261 52.715 12 457.1433006935 40.9560501156 66.407 6 458.9141682594 42.5220280432 59.782 9 479.6872016736 48.5432002789 60.428 10 512.5798510705 47.5259751784 64.424 5 463.3355918448 52.0892653075 55.8 13 442.7725280951 50.6000880158 67.172 15 454.1913320483 42.0175553414 51.086 8 445.8711614613 47.8113602435 60.003 14 476.6797617904 46.7129602984 64.402 9 509.1485902181 55.1860983697 70.032 11 449.7843498332 49.7150583055 56.494 12 439.7286992614 45.1222832102 55.995 13 447.5955456619 48.1710909436 52.569 13 479.0418562111 55.9216427019 60.512 15 424.1577107837 45.9709517973 61.332 14 452.6748430811 41.8278071802 49.708 5 446.2972997905 37.5525499651 62.982 7 432.9893929739 44.2627321623 62.413 13 425.7505608763 41.8304268127 65.768 12 424.8970350698 37.5483391783 65.607 8 469.5451324078 48.554022068 59.221 9 423.7235763439 43.2374293906 59.299 14 369.4439512029 35.1813252005 68.356 15 442.5367815951 40.8837969325 51.234 7 512.308080809 55.1886801348 64.176 10 482.2746485314 53.5341080886 56.07 11 472.7297393989 40.2026232331 55.514 5 465.2472806874 43.5133801146 67.167 9 474.6769171533 47.9813195255 61.789 10 487.5959692449 48.8758282075 52.341 7 517.6538900974 51.4981483496 66.665 6 491.1074654101 45.8914109017 56.759 7 446.1241641662 41.360527361 66.961 10 474.093364936 55.8855608227 54.78 15 450.1016749661 42.167779161 64.095 8 449.3841443731 41.0753573955 49.932 5 430.218019339 40.6891698898 66.083 12 470.879442329 41.8644070548 67.693 7 435.1151862846 40.6451977141 68.244 10 420.135253392 40.6032088987 65.516 11 445.9559329017 49.4624888169 61.181 13 452.8227664146 50.6757944024 53.768 15 420.2913057227 32.5162176204 54.194 5 466.2945989111 52.8422664852 65.241 15 459.0844851968 50.4315808661 56.495 12 431.3004112323 44.4647352054 53.512 10 417.8790295095 44.0256715849 56.725 15 441.4679363315 43.2823227219 59.774 11 434.6765205158 49.429420086 55.1 15 461.2455873684 49.3077645614 54.399 11 473.3100828495 45.8440138082 62.246 7 439.1421717454 47.4188619576 60.629 15 469.229568334 51.7375947223 53.804 13 472.6090081958 47.1063346993 56.971 9 452.2349821023 50.3604970171 64.072 14 458.8086518595 52.3356086433 65.795 14 449.9397858676 40.0367976446 64.719 9 440.2493414462 45.025390241 56.097 12 417.3031798519 38.047696642 51.017 8 448.3612183578 49.3342030596 59.356 13 454.2643038313 51.6448839719 63.395 14 480.2428535303 50.9463089217 54.565 12 500.8637526095 54.4672921016 69.06 13 422.1831133757 42.4453522293 66.511 13 450.2898605212 43.9266434202 52.73 8 445.966772404 45.6877954007 61.84 10 451.2143641661 43.3413940277 64.166 11 496.6747015429 45.1401169238 62.834 6 416.4393847662 45.8282307944 57.47 15 406.9956043415 34.5896007236 50.458 6 438.5189621359 48.8384936893 64.488 14 428.9806966849 40.2984494475 51.19 10 501.830763354 43.8256272257 70.877 5 447.4278888847 43.6899814808 62.288 10 457.2901081441 47.6696846907 60.272 11 416.1933835735 34.1673972622 59.189 5 459.0636394486 38.8816065748 58.774 6 436.4194458934 41.1289076489 66.646 11 439.2728045186 49.0476340864 52.987 14 486.7455045263 48.1989174211 65.552 8 466.9040282658 45.0933380443 69.344 8 443.6872119862 35.8122019977 67.814 7 480.7993191076 47.5300531846 65.619 10 448.9369832165 43.4651638694 57.146 9 423.0552892066 43.3657148678 59.861 12 471.850127446 44.655021241 51.92 5 502.4507911012 48.4411318502 69.804 9 426.0831482017 47.4530247003 52.365 15 515.5813408726 59.9998901454 62.582 14 498.183751107 59.5084585178 63.133 15 457.5017520049 52.9457920008 60.827 14 507.5211548581 49.2211924764 67.194 9 501.9208528976 53.7149754829 49.631 10 412.5109656232 43.9231609372 66.972 15 476.8986106982 55.6342684497 66.093 15 402.164529275 34.8607548792 48 6 476.9366313379 44.2252718896 51.585 7 448.8873295893 45.3953882649 55.515 11 490.2612304158 45.5915384026 67.712 7 477.2890007566 56.2306667928 61.905 15 435.5037136178 49.510285603 68.442 15 457.6364447545 45.8197407924 63.718 12 464.3372692302 41.852378205 58.223 7 451.6673760739 49.0267293457 49.507 12 427.9289427552 40.6554904592 50.996 8 516.9114571924 52.6464095321 64.033 7 490.0823558667 49.0328926445 51.885 9 482.3098648358 42.557810806 58.963 5 475.8937064066 52.7792844011 68.218 14 504.0270846797 54.4286807799 66.455 11 433.6591080888 35.5711846815 68.232 5 403.6237989185 36.8377998197 55.597 11 419.9203810496 42.2562301749 59.383 13 415.0138413175 35.1209735529 56.288 7 425.5204989145 35.1614164858 66.552 6 423.7230904218 48.7925150703 59.968 15 414.5475112895 38.5742518816 54.102 11 531.0636192622 56.7894365437 52.327 9 444.4225400143 44.3725900024 55.187 10 428.9576557124 42.0871092854 49.435 9 462.2743585017 54.482726417 55.378 14 395.0007912301 40.1412985383 60.153 15 490.0360628865 54.6673438144 65.032 14 422.2640867287 45.1631811215 58.285 14 431.435315121 49.5575525202 56.09 15 455.6376174759 53.4206029126 64.114 15 489.8009097712 50.0656516285 60.407 11 446.8263264291 41.7845544048 50.119 8 402.9290552684 35.2423425447 53.475 8 465.1457868931 54.2184644822 62.835 15 436.5993426383 38.0838904397 55.096 5 390.4271139739 36.6336856623 50.625 12 497.050904989 45.6239841648 62.307 6 439.2056403419 39.307940057 54.358 7 492.3705221979 48.429087033 59.796 7 467.5738431258 56.2448071876 52.105 14 460.0843491057 39.3423915176 65.03 7 445.5181611713 44.1643601952 65.532 12 466.4252421365 44.4775403561 59.56 8 457.8702935916 48.3377155986 50.844 10 450.4706222629 52.6276037105 53.705 14 419.1195732938 39.9039288823 51.696 11 441.6711465101 42.561191085 58.304 10 470.183372102 47.4842286837 62.278 10 492.7797700017 47.5737950003 64.337 7 441.448681727 47.5824469545 67.954 13 458.8569906631 42.6524984439 59.942 9 474.0964243178 45.2875707196 55.371 8 483.3222121904 47.1652020317 52.331 7 429.5886513264 35.0804418877 63.106 5 491.7566579088 46.7449429848 60.287 5 447.9079804758 43.9908300793 62.963 12 487.6858799639 49.784479994 58.979 10 497.1448279982 57.358471333 53.994 13 480.8277552137 50.5339592023 66.624 11 478.1161548545 54.6628591424 62.139 13 434.5745403752 47.2357567292 57.16 15 389.9244510447 39.0837418408 50.422 13 430.1651254007 40.1188542335 64.452 10 455.2068130319 53.082802172 50.71 14 445.3204469116 46.2570744853 64.778 11 440.321575233 40.4397625388 52.683 9 467.0693239759 50.442553996 58.414 13 449.55544783 45.4690746383 70.741 12 393.4591927298 33.7145321216 50.172 7 456.7267343221 50.0097890537 51.668 11 455.5242342946 46.9720390491 61.692 13 474.182059197 46.2553431995 59.65 9 437.0019709249 46.1956618208 58.828 13 483.712174332 45.505195722 68.681 7 463.0884981453 44.7939163576 68.325 8 479.4908937429 42.3159822905 66.595 7 416.771119608 37.3076866013 53.925 9 499.000772233 46.9799620388 61.121 6 460.3496378199 46.4769396367 64.488 10 433.4672907815 38.5890484636 48.933 5 435.8826192903 44.291103215 50.136 12 499.8866337002 56.0532722834 67.567 14 393.2875350076 35.3665891679 58.088 10 454.065207553 41.8695345922 51.848 6 434.8780009331 50.7361668222 58.461 15 451.0329368465 38.7928228077 51.276 6 507.8604664868 46.4720777478 58.028 5 481.1461589923 53.3921931654 68.793 14 470.375529945 47.5959216575 52.8 8 472.640958536 44.640659756 61.797 6 421.6142086041 42.9235347673 59.073 14 494.7021538007 49.6511923001 50.795 8 489.5756153792 48.0682692299 62.166 8 485.9583932403 48.8472322067 57.875 8 386.675504129 38.3690840215 52.461 11 478.9159933045 53.4406655508 56.272 14 422.0910889318 35.981514822 61.202 8 451.3667323565 40.7116220594 58.097 7 432.1659170732 48.1233195122 57.426 14 493.2229089693 53.6146514949 60.535 10 399.2562310812 36.0070385135 54.214 11 438.9997776203 44.51179627 57.929 12 415.8979642158 33.3756607026 53.644 5 486.9370209153 58.8033368192 57.117 15 475.6029334994 54.4598222499 67.844 14 466.0203812665 39.2867302111 54.3 5 456.3625275478 39.2357545913 67.948 7 438.8811597402 43.43219329 61.288 11 433.7578739355 45.0449789893 53.488 11 458.5051077593 50.4686846265 69.693 13 513.2956125248 48.2106020875 65.032 7 420.1710396009 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