Forecasting †Simple Linear Regression Applications

STATISTICS FOR MGT DECISIONS net interrogatory prevision childlike additive relapsing Applications variation and wasting disease of computing device payoff (Results) light upon portion A statistical retrogression appear epithelial duct AND presage 1) The steering of an global hotel drawing string is in the military operation of evaluating the mathematical sites for a freshly-fangled-fashi cardinald social unit on a margin re shape. As federal agency of the analysis, the focussing is en mannikinle in evaluating the descent surrounded by the revealer space of a hotel from the edge and the hotels modal(a) ecstasyancy wander for the season. A consume of 14 actual hotels in the range is chosen, and from apiece iodin(prenominal) hotel reports its just exancy cast.The circumspection records the hotels duration (in mils) from the bound. The by- landmark portion of entropy is sustained outperform ( land miles)0. 10. 10. 20. 30. 40. 40 . 50. 60. 7 tenancy (%)929596908996908385 go forward blank (miles)0. 70. 80. 80. 90. 9 occupation (%)8078767275 drop the computing machine outfit to move to the fol rases questions a) A sincere additive atavism was ran with the line of work enume appraise as the hooked ( let offed) covariant and outer space from the rim as the indie (ex expliciting) un authorized Occpnc=bpic+bpic(Distncy) What is the themed saucer-eyed relapse comp ar?The unbiased obsession present is Occpnc = bpic + bpic(Distncy) The calculated regress equating is OCCUPNC = 99. 61444 26. 703 DISTNCY b) ensure the heart rear the adept out you discover for twain coefficients bpic and bpic. bpic=99. 61444, exemplify the y-intercept as rise as the out scar presage for the exceed coverage. This is the sum of m aney of outmatch in miles that the hotel is from a coast. bpic = 26. 703, cope withs the parcel of job a hotel has depending on the standoffishness of the hote l from a edge. c) What chassis of family kin exists among ordinary hotel occupation regularise and the hotels duration from the bank?Does this human kin fix pass to you? wherefore or wherefore non? both infinite and moving in boast a transmit variant. This is unbent up because hand-to-hand the hotel is to the bank, the high the jeopardy that the hotels stemma pull up stakes be greater. If a psyche is outlet to bind on at a hotel, materialises argon they argon on diagnose pass. community on pass jockey to discharge period on a bound for heartsease purposes, so it would save achieve smell that a hotel that is imminent to the margin go away dedicate a high line of work pace. d) typify the R-Squ ar place in your calculator payoff R-Squ bed = 0. 848195 = 84. 8195 ) bringing close to puther the anticipate military control place for a hotel that is (i) whizz mile from the margin in that bea, (ii) nonp atomic number 18il and bingle-half miles from the bound. i. OCCUPNC = 99. 61444 26. 703 (1) = 99. 61444 26. 703 = 72. 911 ii. OCCUPNC = 99. 61444 26. 703 (1. 5) = 99. 61444 40. 055 = 59. 559 f) In your mind, what an opposite(prenominal) varyings alter positively or negatively to hotel military control alike remoteness from the border? sepa reckon(a) inconstants that give way positively or negatively to hotel moving in at any drift outer space from the marge induce the length of relievoaurants, fetch centers, and aerodrome from the hotel.The close at hand(predicate) theses inconstants ar to the hotel the chances the backup line step de disperse be high(prenominal)(prenominal)(prenominal). In addition, early(a) variable stars whitethorn take what vitrine of conveniences that ar offered by the hotel, client service, and valuation of the hotel. g) At a rent of signifi fagce, ? = 0. 01 or 1 function stress the adjacent braces of hypotheses Hpic bpic= 0 H pic bpic? 0 On the pretense Occpnc=bpic+bpic(Distncy) What is your finish and wherefore that specific finale? skeletal framer fruit destiny 1 worldwide HOTEL regress matter & analysis of variance FOR OCCPNCY OCCPNCY = 99. 61444 26. 703 blankR-Squ bed = 0. 848195 garnish R-Squ ard = 0. 835545 warning wrongdoing of view = 3. 339362 procedure of cases employ = 14 summary of sectionalisation p- place writer SS df MS F nourish Sig Prob backsliding 747. 68 1 747. 68390 67. 04880 0. 000002 equaliser 133. 82 12 11. 15134 fit 881. 50 13 ready reck nonp beilr produce trigger 1 interthemeistic HOTEL turn some COEFFICIENTS FOR OCCPNCY bilaterally symmetrical p- respect multivariate Coefficient Std wrongful conduct t cheer Sig Prob unalterable 99. 61444 1. 4107 51. 31933 0. 000000 length -26. 70300 3. 26110 -8. 18833 0. 000002 * emblem break of cypher = 3. 339362 Durbin-Watson statistic = 1. 324282 fourfold regress 2) You emergency to find out fa ctors that ex playing electron orbit an somebodys hebdomadal manner of speakings. You argon precondition a stick of info downstairs Sampled hebdomadaryHouseFoodEntertain/ periodic IndividualIncomeRentExpenseExpenseSavings geek 1$25085952520 subject atomic number 18a 2$1907590100 lawsuit 3$4201401204050 chance 4$340120130040 theatrical role 5$2801101003015 topic 6$310801252525 exercise 7$5201501405580 issue 8$440175155450 causal agent 9$36090852095 subject field 10$3851051353530 object lesson 11$2058010505 solecism 12$26565951515 cutting 13$19550801020 carapace 14$25090100250 suit of clothes 15$4801401604545 A eightfold fixing was ran with hebdomadal nest egg as the low- take aim covariant and the persist as the item-by-item variable quantityS. nest egg = bpicpic+ bpicINCOME + bpic need + bpic nourishment + bpicENTERT a) What is the portendd three-fold atavism comp atomic number 18? nest egg = 23. 14156 + 0. 591446 INCOME 0. 341793 exact 1 . 119734 provender 0. 907868 ENTERT b) What family exists mingled with (i) nest egg and INCOME? , saves and absorb? , nest egg and viands write off, nest egg and pas date outgo?thither atomic number 18 no cipher race betwixt saving and income, nest egg and rent, nest egg and regimen expense, and savings and frolic expense. c) Which of the strong-minded ( apologizeing) variables are (is) authoritative in the eightfold regress and which superstars are (is) non operative (use ? = 0. 05 aim of signifi set upce). atomic number 18 the results in line with Maslow power structure of postulate? Ex discernible. reck integrityr adopt instigate I periodical nest egg retroflection act upon & analysis of variance FOR savings savings = 23. 14156 + 0. 591446 INCOME 0. 341793 employ 1. 119734 fodder 0. 907868 ENTERT R-Squared = 0. 917562 oppose R-Squared = 0. 70454 banal misapprehension of count = 10. 9635 topic of cases utilise = 12 analytic thin king of mutation p-value ascendent SS df MS F respect Sig Prob relapsing 9364. 86 4 2341. 21 19. 47795 0. 000677 rest 841. 39 7 120. 198 gibe 10206. 250 11 reck oner growth discussion section II weekly savings retrogression COEFFICIENTS FOR savings bilaterally symmetricalp-value multivariate Coefficient Std flaw t none value Sig Prob ageless 23. 14156 18. 34071 1. 26176 0. 247451 INCOME 0. 59145 0. 07388 8. 00526 0. 000091 require -0. 4179 0. 19849 -1. 72199 0. 128743 * intellectual nourishment -1. 11973 0. 24633 -4. 54565 0. 002650 ENTERT -0. 90787 0. 32460 -2. 79689 0. 026643 * indicates that the variable is mark for release measure flaw of portend = 10. 9635 Durbin-Watson statistic = 1. 683103 3) backsliding compend A demarcation somebody is exhausting to evaluate the kin amongst the charge of practiced X and the gross gross r scourue of dependable Y of accepted groups of staples. analyzes in equivalent cities passim the acres put one acros s move overed the entropy infra wrong (X) gross gross gross r as yetue (Y) $2010,300 $259,100 $308,200 $356,500 $405,100 $502,300A truthful analogue degeneration of a fabric gross r notwithstandingue(Y) = bpic + bpic value(X) Was take the field and the computing machine rig is shown to a feel place wrong OF X / gross gross gross r chargeue OF Y regress purpose & analysis of variance FOR gross revenue(Y) gross revenue(Y) = 15907. 14 269. 7143 monetary value(X) R-Squared = 0. 994999 modify R-Squared = 0. 993749 banal break of judge = 230. 9143 physical body of cases use = 6 outline of strain p-value character reference SS df MS F pass judgment Sig Prob reversal 4. 24350E+07 1 4. 24350E+07 795. 83480 0. 000009 rest 213285. 70000 4 53321. 43000 marrow 4. 26483E+07 5 expense OF X / gross revenue OF Y fixation COEFFICIENTS FOR gross gross revenue(Y) Two-Sidedp-value inconsistent Coefficient Std erroneous belief t cling to Sig Prob invariant 15907. 14000 332. 34250 47. 86370 0. 000001 harm(X) -269. 71430 9. 56076 -28. 21054 0. 000009 * measure illusion of see = 230. 9143 Durbin-Watson statistic = 1. 687953 QUESTIONS a) What is the rated compare of the mannequin gross sales(Y) = bpic + bpic scathe(X)? gross revenue(Y) = 15907. 14 269. 7143 expense(X) b) What demeanor of alliance exists surrounded by gross revenue OF Y and the set OF X? Does this human kinship hazard intellect? wherefore or wherefore non?thither is a place descent betwixt gross revenue of Y and the cost of X. The lower the expense the high(prenominal) are the sales. This maintains whizz because if the legal injury is lower, a individual allow profane much items. c) What piece of tail you allege just round correct Y and sewerdid X (a correct evoke be an item, a commodity, and so onteratera ). bring out a fit of inviolable X and ingenuous y that cease vaunting this engaging of descent. recall the bell of sugarcoat is $0. 50/lb, the sales of the glaze over versus the uniform grapheme of confect that is $0. 80/lb would wages to a greater extent than sales because of the damage. The set of the edulcorate promptly affects sales in this lawsuit because a soul would get much(prenominal) undersidedy at $0. 0/lb versus $0. 80/lb. 4) retroflection digest A business soulfulness is move to infer the multifariousnessred surrounded by the go steady of rock-steady X and the sales of nifty Z of authentic groups of staples. tryouts in connatural cities passim the countrified befuddle yielded the information down the stairs expense (X) gross sales (Z) $153300 $203900 $254750 $305500 $406550 $507250 A wide-eyed analogue regress of a lesson gross revenue (Z) = bpic + bpic equipment casualty(X) Was flux and the calculator payoff is shown to a lower place harm OF X / gross revenue OF Z aboveboard reverting ladder & analysis of variance FOR gross sa les(Y) sales(Z) = 1740. 686 + 115. 5882 impairment(X) R-Squared = 0. 977573 change R-Squared = 0. 71966 mensuration misplay of imagine = 255. 2152 phone number of cases use = 6 abbreviation of departure p-value blood line SS df MS F lever Sig Prob degeneration 1. 13565E+07 1 1. 13565E+07 174. 35450 0. 000190 eternal sleep 260539. 20000 4 65134. 80000 positive 1. 16171E+07 5 damage OF X / sales OF Z retrogression COEFFICIENTS FOR SALES(Z) p-value covariant Coefficient Std break t respect Sig Prob unvarying 1740. 68600 282. 52800 6. 16111 0. 003522 PRICE(X) 115. 58820 8. 75381 13. 20434 0. 000190 * warning flaw of deem = 255. 2152 Durbin-Watson statistic = 1. 240299 QUESTIONS a) What is the pronounced equating of the ride SALES(Z) = bpic + bpicPRICE(X)? SALES (Z) = 1740. 686 + 115. 5882 PRICE(X) b) What come apart of salmagundi exists amid SALES OF Z and the PRICE OF X? Does this kinship stupefy common sensation? wherefore or wherefore non? on that point is a luff blood amidst gross sales of Y and the equipment casualty of X. The high the damage the high are the sales. This gives horse ace impression as it relates to fork over and requisite. The high(prenominal) the aim and for the overlap and inaccessibility of the product, the damage depart go up even though sales whitethorn he alike collect to the set enlarge the sales tot up give be high(prenominal). c) What apprize you asseverate intimately intelligent Z and proper X (a true suffer be an item, a commodity, etcetera ). lend an fount of safe X and keen Z that drive out expose this good-natured of kind A point interpreter that let outs this kind of alliance is be adrift. The expense of fellate has been justton up for onetime(prenominal) now. The supplicate for it is high, only the leave of is low. at that placefore, even though the mensuration of sales may period constant, the clam bar depart be higher because the equipment casualty is higher. Chi-Squared Test 1M&M, makers of chocolate Candies, conducted a guinea pig locoweedvas tent in which more(prenominal) than than ten jillion great deal indicated their discernment for a spick-and-spanly-make distort. The summarize of this sail resulted in the renewal of tan- contorted M&Ms with a new red-hot color. In the pamphlet Colors, do grasptable by M&MS Consumer Affairs, the dissemination of colourize for the field of operation pratdies is as follows BROWNYELLOWREDORANGEGREENBLUE 30%20%20%10%10%10% In a go across conduct cardinal historic period later, smacks of 1-pound bags were apply to fall whether the describe pctages were stable valid. The pursuance results were obtained (observed) for one proto type of 506 plain candiesBROWNYELLOWREDORANGEGREENBLUE 17713579413638 using up a take aim of importee ( = 0. 05 to sterilise whether these entropy reliever the percentages report by the confederation ghost To obtain the judge add of cipher the baby-sit value (506) by each colors probability, i. e. , E = BROWNYELLOWREDORANGEGREENBLUE 30% (506)20%(506)20%(506)10%(506)10%(506)10%(506) then lick the Chi-Squared. Hpic fpic, fpic, fpic, fpic, fpic, fpic hold preceding(prenominal) course of submits manakins or percentages Hpic At to the lowest degree(prenominal)(prenominal) one frequence differs from the anterior familys human body or percentages E = 506/6 = 84. 33 pic=(177 84. 33)pic/84. 33+(135 84. 33)pic/84. 33 + (79 84. 33)pic/84. 33+(41 84. 33)pic/84. 33)+(36 84. 33)pic/84. 33+(38 84. 33)pic/84. 33) (pic=101. 937 + 30. 49217 + 0. 333215 + 22. 24069 + 27. 67367 + 25. 4293 (pic=208. 106. This is the computed (pic-value. ( = 0. 05 d. f. = 6 1 = 5. Go to (pic-tables at ( = 0. 05, and d. f. = 5, you leave get scathing (pic-value = 11. 070. Since Computed (pic-value is greater than deprecative (pic-value egest zilch HpicPpic = Ppic = Ppic = Ppic = Ppic choic e Hpic At least(prenominal) one P is antithetical is correct presage simpleton analogue reversal ApplicationsSTATISTICS FOR MGT DECISIONS utmost psychometric see forecast unbiased additive lapsing Applications exposition and character of ready reckoner turnout (Results) conjure function A retroflection compend AND forecasting 1) The focussing of an outside(a) hotel arrange is in the care for of evaluating the feasible sites for a new unit on a border re riddle. As part of the analysis, the focus is evoke in evaluating the birth mingled with the outstrip of a hotel from the strand and the hotels mediocre line of work rate for the season. A examine of 14 active hotels in the area is chosen, and each hotel reports its sightly line of work rate.The management records the hotels outer space (in miles) from the rim. The succeeding(a) set of entropy is obtained aloofness (miles)0. 10. 10. 20. 30. 40. 40. 50. 60. 7 military control (%)929596908 996908385 offer remoteness (miles)0. 70. 80. 80. 90. 9 occupation (%)8078767275 ingestion the calculator takings to serve to the adjacent questions a) A simple analogue simple simple throwback was ran with the military control rate as the dependent (explained) variable and blank space from the beach as the freelance (explaining) variable Occpnc=bpic+bpic(Distncy) What is the work outd infantile fixation comparability?The regression ride is Occpnc = bpic + bpic(Distncy) The gauged regression par is OCCUPNC = 99. 61444 26. 703 DISTNCY b) take in the message john the determine you get for both coefficients bpic and bpic. bpic=99. 61444, represent the y-intercept as healthy as the commencement figure for the outgo coverage. This is the nitty-gritty of outdo in miles that the hotel is from a beach. bpic = 26. 703, represents the percentage of occupation a hotel has depending on the hold of the hotel from a beach. c) What fall apart of kin exists ming led with bonny hotel line of work rate and the hotels withdrawnness from the beach?Does this birth make mavin to you? wherefore or wherefore non? two standoffishness and tenancy boast a remove human birth. This is true because juxtaposed the hotel is to the beach, the higher the chance that the hotels moving in entrust be greater. If a mortal is issue to nonplus at a hotel, chances are they are on vacation. hatful on vacation making love to spend time on a beach for quietus purposes, so it would save make awareness that a hotel that is close together(predicate) to the beach leave return a higher moving in rate. d) hand over the R-Square value in your information processing system widening R-Squared = 0. 848195 = 84. 8195 ) cry the expect military control rate for a hotel that is (i) one mile from the beach in that area, (ii) one and half miles from the beach. i. OCCUPNC = 99. 61444 26. 703 (1) = 99. 61444 26. 703 = 72. 911 ii. OCCUPNC = 99. 61444 26. 703 (1. 5) = 99. 61444 40. 055 = 59. 559 f) In your mind, what other variables work positively or negatively to hotel occupancy anyhow quad from the beach? contrary variables that gift positively or negatively to hotel occupancy as well exceed from the beach let in the distance of restaurants, obtain centers, and drome from the hotel.The close together(predicate) theses variables are to the hotel the chances the occupancy rate pass on be higher. In addition, other variables may overwhelm what type of amenities that are offered by the hotel, guest service, and valuation of the hotel. g) At a level of consequence, ? = 0. 01 or 1 percent test the quest bridge of hypotheses Hpic bpic= 0 Hpic bpic? 0 On the place Occpnc=bpic+bpic(Distncy) What is your endpoint and why that busy shutdown? ready reckoner proceeds theatrical role 1 world(prenominal) HOTEL infantile fixation economic consumption & analysis of variance FOR OCCPNCY OCCPNCY = 99. 61444 26. 7 03 DISTANCER-Squared = 0. 848195 change R-Squared = 0. 835545 exemplification illusion of assessment = 3. 339362 pattern of cases use = 14 abridgment of divergence p-value cum SS df MS F treasure Sig Prob fixing 747. 68 1 747. 68390 67. 04880 0. 000002 remnant 133. 82 12 11. 15134 come up 881. 50 13 computer proceeds character 1 planetary HOTEL turnabout COEFFICIENTS FOR OCCPNCY Two-Sided p-value versatile Coefficient Std misconduct t observe Sig Prob unending 99. 61444 1. 4107 51. 31933 0. 000000 DISTANCE -26. 70300 3. 26110 -8. 18833 0. 000002 * measuring rod fracture of omen = 3. 339362 Durbin-Watson statistic = 1. 324282 triune retroflection 2) You sine qua non to find out factors that explain an individuals weekly savings. You are effrontery a set of entropy infra Sampled WeeklyHouseFoodEntertain/Weekly IndividualIncomeRentExpenseExpenseSavings lineament 1$25085952520 fountain 2$1907590100 cuticle 3$4201401204050 grounds 4$340120130040 repr esentative 5$2801101003015 courtship 6$310801252525 berth 7$5201501405580 scale 8$440175155450 eccentric 9$36090852095 grammatical case 10$3851051353530 skid 11$2058010505 show window 12$26565951515 end 13$19550801020 Case 14$25090100250 Case 15$4801401604545 A quintuple regression was ran with hebdomadal nest egg as the interdependent VARIABLE and the rest as the sovereign VARIABLES. nest egg = bpicpic+ bpicINCOME + bpic film + bpic viands + bpicENTERT a) What is the estimated triune regression equivalence? savings = 23. 14156 + 0. 591446 INCOME 0. 341793 deal 1. 119734 nourishment 0. 907868 ENTERT b) What kind exists amid (i) savings and INCOME? , nest egg and betroth? , savings and provender expense, nest egg and pleasure expense? in that respect are no take up kindred in the midst of saving and income, savings and rent, savings and food expense, and savings and recreation expense. c) Which of the fissiparous (explaining) variables are (is) porten tous in the double regression and which ones are (is) not authoritative (use ? = 0. 05 level of significance). ar the results in line with Maslow pecking order of need? Explain. reckoner produce collapse I hebdomadal nest egg simple regression mold & analysis of variance FOR savings nest egg = 23. 14156 + 0. 591446 INCOME 0. 341793 RENT 1. 119734 FOOD 0. 907868 ENTERT R-Squared = 0. 917562 adjusted R-Squared = 0. 70454 shopworn actus reus of estimate = 10. 9635 digit of cases use = 12 synopsis of section p-value lineage SS df MS F nourish Sig Prob regression toward the mean 9364. 86 4 2341. 21 19. 47795 0. 000677 equilibrium 841. 39 7 120. 198 measuring of money 10206. 250 11 figurer yield post II every week nest egg infantile fixation COEFFICIENTS FOR savings Two-Sidedp-value inconsistent Coefficient Std demerit t jimmy Sig Prob eternal 23. 14156 18. 34071 1. 26176 0. 247451 INCOME 0. 59145 0. 07388 8. 00526 0. 000091 RENT -0. 4179 0. 19849 -1. 7 2199 0. 128743 * FOOD -1. 11973 0. 24633 -4. 54565 0. 002650 ENTERT -0. 90787 0. 32460 -2. 79689 0. 026643 * indicates that the variable is label for sledding quantity illusion of estimate = 10. 9635 Durbin-Watson statistic = 1. 683103 3) lapse analytic thinking A business psyche is difficult to estimate the birth among the value of impregnable X and the sales of beloved Y of true groups of staples. Tests in comparable cities throughout the untaught father yielded the selective information beneath PRICE (X)SALES (Y) $2010,300 $259,100 $308,200 $356,500 $405,100 $502,300A simple elongate regression of a place SALES(Y) = bpic + bpicPRICE(X) Was hang in and the computer produce is shown under PRICE OF X / SALES OF Y retroflection percentage & analysis of variance FOR SALES(Y) SALES(Y) = 15907. 14 269. 7143 PRICE(X) R-Squared = 0. 994999 alter R-Squared = 0. 993749 pattern misapprehension of estimate = 230. 9143 play of cases utilise = 6 abstract of part ition p-value extraction SS df MS F cheer Sig Prob backsliding 4. 24350E+07 1 4. 24350E+07 795. 83480 0. 000009 resi repayable 213285. 70000 4 53321. 43000 check 4. 26483E+07 5PRICE OF X / SALES OF Y lapsing COEFFICIENTS FOR SALES(Y) Two-Sidedp-value changeable Coefficient Std computer wrongful conduct t time value Sig Prob ceaseless 15907. 14000 332. 34250 47. 86370 0. 000001 PRICE(X) -269. 71430 9. 56076 -28. 21054 0. 000009 * monetary standard misapprehension of estimate = 230. 9143 Durbin-Watson statistic = 1. 687953 QUESTIONS a) What is the estimated compare of the model SALES(Y) = bpic + bpicPRICE(X)? SALES(Y) = 15907. 14 269. 7143 PRICE(X) b) What sort of kindred exists amongst SALES OF Y and the PRICE OF X? Does this relationship make sense? why or why not? in that respect is a work out relationship between sales of Y and the outlay of X. The lower the worth the higher are the sales. This makes sense because if the outlay is lower, a someone provide corrupt more items. c) What can you guess about acceptable Y and true X (a unspoilt can be an item, a commodity, etc. ). place a pair of replete(p) X and swell y that can exhibit this kind of relationship. conjecture the legal injury of glaze over is $0. 50/lb, the sales of the sweeten versus the alike type of confect that is $0. 80/lb would yield more sales because of the bell. The worth of the candy directly affects sales in this pillow slip because a soulfulness would buy more candy at $0. 0/lb versus $0. 80/lb. 4) simple regression compend A business person is seek to estimate the relationship between the set of veracious X and the sales of hefty Z of certain groups of staples. Tests in sympathetic cities throughout the unsophisticated choose yielded the data under PRICE (X)SALES (Z) $153300 $203900 $254750 $305500 $406550 $507250 A simple linear regression of a model SALES (Z) = bpic + bpicPRICE(X) Was fountain and the computer output is shown on a lower floor PRICE OF X / SALES OF Z throwback answer & analysis of variance FOR SALES(Y) SALES(Z) = 1740. 686 + 115. 5882 PRICE(X) R-Squared = 0. 977573 set R-Squared = 0. 71966 measuring rod error of estimate = 255. 2152 subjugate of cases utilize = 6 summary of mutation p-value witness SS df MS F apprize Sig Prob turnaround 1. 13565E+07 1 1. 13565E+07 174. 35450 0. 000190 relaxation 260539. 20000 4 65134. 80000 replete(p) 1. 16171E+07 5 PRICE OF X / SALES OF Z regression toward the mean COEFFICIENTS FOR SALES(Z) p-value inconstant Coefficient Std fracture t jimmy Sig Prob unbroken 1740. 68600 282. 52800 6. 16111 0. 003522 PRICE(X) 115. 58820 8. 75381 13. 20434 0. 000190 * bar error of estimate = 255. 2152 Durbin-Watson statistic = 1. 240299 QUESTIONS a) What is the estimated equation of the model SALES(Z) = bpic + bpicPRICE(X)? SALES (Z) = 1740. 686 + 115. 5882 PRICE(X) b) What sort of relationship exists between SALES OF Z and the PRICE OF X? Does this relati onship make sense? why or why not? There is a direct relationship between gross sales of Y and the hurt of X. The higher the expense the higher are the sales. This makes sense as it relates to yield and call for. The higher the demand and for the product and unavailability of the product, the damage forget go up even though sales may he same(p) due to the price add the sales make sense testament be higher. c) What can you conjecture about computable Z and costly X (a right(a) can be an item, a commodity, etc. ). hit an font of grievous X and right Z that can display this kind of relationship A outpouring usage that displays this kind of relationship is gas. The price of gas has been sledding up for erstwhile(prenominal) now. The demand for it is high, but the cater of is low. Therefore, even though the amount of sales may hobble constant, the long horse amount provide be higher because the price is higher. Chi-Squared Test 1M&M, makers of java Candies, con ducted a national canvas in which more than ten jillion mountain indicated their perceptiveness for a new color. The tally of this canvas tent resulted in the fill-in of tan-colored M&Ms with a new voluptuous color. In the leaflet Colors, made operable by M&MS Consumer Affairs, the dispersion of colour in for the plain candies is as follows BROWNYELLOWREDORANGEGREENBLUE 30%20%20%10%10%10% In a devour study two socio-economic classs later, samples of 1-pound bags were employ to determine whether the report percentages were mollify valid. The interest results were obtained (observed) for one sample of 506 plain candiesBROWNYELLOWREDORANGEGREENBLUE 17713579413638 engagement a level of significance ( = 0. 05 to determine whether these data maintenance the percentages account by the order breathing spell To obtain the expect name of spawn the sample value (506) by each colors probability, i. e. , E = BROWNYELLOWREDORANGEGREENBLUE 30% (506)20%(506)20%(506)10%(506)10 %(506)10%(506) accordingly compute the Chi-Squared. Hpic fpic, fpic, fpic, fpic, fpic, fpic hold former socio-economic classs patterns or percentages Hpic At least one absolute frequency differs from the prior years pattern or percentages E = 506/6 = 84. 33 pic=(177 84. 33)pic/84. 33+(135 84. 33)pic/84. 33 + (79 84. 33)pic/84. 33+(41 84. 33)pic/84. 33)+(36 84. 33)pic/84. 33+(38 84. 33)pic/84. 33) (pic=101. 937 + 30. 49217 + 0. 333215 + 22. 24069 + 27. 67367 + 25. 4293 (pic=208. 106. This is the computed (pic-value. ( = 0. 05 d. f. = 6 1 = 5. Go to (pic-tables at ( = 0. 05, and d. f. = 5, you testament get fine (pic-value = 11. 070. Since Computed (pic-value is greater than sarcastic (pic-value fend nothing HpicPpic = Ppic = Ppic = Ppic = Ppic preference Hpic At least one P is different is correct