This example uses the Companies.jmp data table, which contains financial data for 32 companies from the pharmaceutical and computer industries.
First, create a scatterplot to see the relationship between the number of employees and the amount of sales revenue. This scatterplot was created in Create the Scatterplot in Visualize Your Data. After hiding and excluding one outlier (a company with significantly more employees and higher sales), the plot in Figure 3.89 shows the result.
To predict the sales revenue from the number of employees, fit a regression model. From the red triangle for Bivariate Fit, select Fit Line. A regression line is added to the scatterplot and reports are added to the report window.
Figure 3.90 Regression Line
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Figure 3.91 Comparing the Models
Using the results in Figure 3.91, the data analyst can make the following conclusions: