I took AP Stats (4 years ago) where I learned about regressions, and I took it in college, although we didn't get too much into regressions. Anyways I'm trying to brush up on not necessarily DOING the regression, but sort of the interpretation of results and such.
It came up at work, where basically I'm looking at this data of the major defense companies and the proportion of their total sales that are weapons.
For example, here's a little taste of what I'm looking at (just because some people might be interested)
Boeing was ranked #1 on the "top 100 arms producing companies" - with 46% of its total sales in 2007 going towards arms. In 2006 the proportion was 50%.
Anyways, I was looking at this stuff and I thought to myself "hey, it would be cool to see if there is any relation between the profit earned and the proportion of sales going to arms!" Basically what I am trying to do is see if there is a relation between increasing profits of these companies, and the lowering of spending on arms.
Arms %: 50
Profit: 2,215 (million)
Arms %: 46%
Profit: 4,074 (million)
Is there any relation? Is it a coincidence? I'm really curious. So I figured doing a regression might be a good idea to test this out.
Am I correct in assuming that a regression test would be good in this situation? Also, I'm planning on using about 5-10 years of data for maybe 10-12 different companies... is this something a regression test can do?
I'm just trying to basically remember if this is the right statistical test to use.