# A regional airline transfers p

A regional airline transfers passengers from small airports to alarger regional hub airport. The airline data analyst was assignedto estimate the revenue ( in thousands of dollars) generated byeach of the 22 small airports based on two variables: the distancefrom each airport ( in miles) to the hub and the population ( inhundreds) of the cities in which each of the 22 airports islocated. The data is given in the following table.

Airport revenue        distance         population

1         233               233               56

2         272               209               74

3         253               206               74

4         296               232               78

5         268               125               73

6         296               245               54

7         276               213               100

8         235               134               98

9         253               140               95

10       233               165               81

11       240               234               52

12       267               205               96

13       338               214               96

14       243               183               73

15       252               230               55

16       269               238               91

17       242               144               64

18       233               220               60

19       234               170               60

20       450               170               240

21       340               290               70

22       200               340               75

1. Using PROC CORR in SAS, create a matrix of scatter plots forrevenue, population, and distance. Include this graph in your LATEXdocument.
2. From your scatter plots in part (a), is there a data point thatyou think may be an “issue” for analysis?
3. Construct and report a multiple regression model relating:          revenue(y)         distance(x1)         population(x2)          usingSAS.
4. Construct the 95% confidence interval for β1 by hand.(Use βˆ1 and the standard error calculated by SAS.)

From your scatter, plots in part (a), is there a data point thatyou think may be an “issue” for analysis?

Yes, there are some outliers in the data, which need to beremoved. We are creating a model without removing them.

The 95% confidence interval of beta_1 is given by

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