# Research and Profit

#### Rojo

##### New Member
I need some help with this problem. My cooperation is interested in the relationship of funds expended in research and cooperation profit. The result are: p = .0013 and r = .91.

What is the independent and dependent variable?
What are the hypothese?
What would be your decision?
What percent of the variance in profit is accounted for by the variation spend on research?
what percent of variance in profit is not accounted for by the variation spent on research?

Rojo

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#### JohnM

##### TS Contributor
What is the independent and dependent variable?
The independent variable would be the variable that is being "controlled" (the input) and the dependent variable is the "response" variable (the output) you're interested in studying

What are the hypothese?
Usually the null hypothesis asserts the absence of a significant relationship, and the alternative, or research hypothesis asserts the presence of a significant relationship

What would be your decision?
If the p value is less than where it is set prior to the study, then there is sufficient evidence to reject the null hypothesis

What percent of the variance in profit is accounted for by the variation spend on research?
this is equal to r^2

what percent of variance in profit is not accounted for by the variation spent on research?
this is equal to 1 - r^2