Business Research Methods

 Question: You recently started following Soccer and are deciding which country to follow (other than your own country) in the upcoming FIFA world cup. You decide to use your BRM knowledge and tools to come to a decision that might result in following a country’s team, which has a higher chance of winning the world cup. You get your hands on the FIFA rankings based on points for 30 countries. A) Download the data set called “FIFA Rankings Data-Extra Credit Homework.xlsx” The first variable is the FIFA ranking points (the higher the points, the better the team). The second variable is the economic factor and the third is labor market factors. B) You have a proposition that economic factors and labor market factors might contribute to soccer rankings. Can you use your intuition make a prediction about how (positively or negatively) both these variables may be related to soccer rankings? Justify your choice. C) Build a Multiple Linear Regression Model to confirm the above proposition. Give all the details of the model. (Use Excel’s data analysis toolpak or R to do so) Make sure you present the following as a part of your solution; Regression equation Scatterplot (with and with out the regression line) (extra points for using the 3d plot in R) ANOVA Table R sq and adjusted R sq D) Is your intercept term statistically significant? Are any of your coefficient terms statistically significant? E) Is the model a good fit to the data? Based on your model, would you decide to follow a country with high GDP and low unemployment rate? F) Comment on which one of the assumptions of OLS might have been violated. Economy Variable Labour market Variable GDP per capita unemployment rate Country FIFA Ranking Points US$ % Algeria 8 5,438 9.8 Argentina 124 11,766 7.2 Australia 9 64,863 5.2 Belgium 39 45,384 7.5 Brazil 216 11,311 6.9 Cameroon 19 1,271 3.8 Chile 33 15,776 6.4 Colombia 11 8,098 10.4 Costa Rica 10 10,433 7.6 Croatia 20 13,562 15.8 Ecuador 9 5,968 4.5 England 97 39,567 7.9 France 86 43,000 9.9 Germany 199 44,999 5.4 Ghana 14 1,730 3.6 Greece 3 21,857 24.2 Honduras 3 2,323 4.8 Iran 5 4,751 13.1 Italy 153 34,715 10.7 Ivory Coast 7 1,175 4 Japan 15 38,491 4.3 Korea Republic 23 24,329 3.2 Mexico 49 10,630 4.9 Netherlands 76 47,634 5.3 Nigeria 14 1,692 7.5 Portugal 39 20,728 15.6 Russia 57 14,819 5.5 Spain 96 29,150 25.2 Switzerland 33 81,324 4.2 United States 26 53,101 8.1 Uruguay 66 16,609 6