(See attached file for full problem description)

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Chapter 14 Exercise 18 (please work this problem) and give correct answers

18. Fran's Convenience Marts are located throughout metropolitan Erie, Pennsylvania. Fran, the owner, would like to expand into other communities in northwestern Pennsylvania and southwestern New York, such as Jamestown, Corry, Meadville, and Warren. As part of her presentation to the local bank, she would like to better understand the factors that make a particular outlet profitable. She must do all the work herself, so she will not be able to study all her outlets. She selects a random sample of 15 marts and records the average daily sales (Y), the floor space (area), the number of parking spaces, and the median income of families in that ZIP code region for each. The sample information is reported below.

Sampled Mart Daily Sales Store Area Parking Spaces Income ($ Thousands)

1 1840 532 6 44

2 1746 478 4 51

3 1812 530 7 45

4 1806 508 7 46

5 1792 514 5 44

6 1825 556 6 46

7 1811 541 4 49

8 1803 513 6 52

9 1830 532 5 46

10 1827 537 5 46

11 1764 499 3 48

12 1825 510 8 47

13 1763 490 4 48

14 1846 516 8 45

15 1815 482 7 43

1. Determine the regression equation.

2. What is the value of R2? Comment on the value.

3. Conduct a global hypothesis test to determine if any of the independent variables are different from zero.

4. Conduct individual hypothesis tests to determine if any of the independent variables can be dropped.

5. If variables are dropped, recompute the regression equation and R2.

Chapter 13. Exercise 50 (please work this problem) and answer all questions

Super Markets, Inc. is considering expanding into the Scottsdale, Arizona, area. Ms. Luann Miller, Director of Planning, must present an analysis of the proposed expansion to the operating committee of the board of directors. As part of her proposal, she needs to include information on the amount people in the region spend per month on grocery items. She would also like to include information on the relationship between the amount spent for grocery items and income. She gathered the following information.

Household Monthly Amount Monthly Income Household Monthly Amount Monthly

1 $555 $4,388 21 $913

2 489 4,558 22 918

3 458 4,793 23 710

4 613 4,856 24 1,083

5 647 4,856 25 937

6 661 4,899 26 839

7 662 4,899 27 1,030

8 675 5,091 28 1,065

9 549 5,133 29 1,069

10 606 5,304 30 1,064

11 668 5,304 31 1,015

12 740 5,304 32 1,148

13 592 5,346 33 1,125

14 720 5,495 34 1,090

15 680 5,581 35 1,208

16 540 5,730 36 1,217

17 693 5,943 37 1,140

18 541 5,943 38 1,265

19 673 6,156 39 1,206

20 676 6,603 40 1,145

Income

$6,688

6,752

6,837

7,242

7,263

7,540

8,009

8,094

8,264

8,392

8,414

8,882

8,925

8,989

9,053

9,138

9,329

9,649

9,862

9,883

a. Let the amount spent be the dependent variable and monthly income the independent variable. Create a scatter diagram, using a software package.

b. Determine the regression equation. Interpret the slope value.

c. Determine the coefficient of correlation. Can you conclude that it is greater than 0?

Chapter 14 Exercise 18 (please work this problem) and give correct

answers

Fran's Convenience Marts are located throughout metropolitan Erie,

Pennsylvania. Fran, the owner, would like to expand into other

communities in northwestern Pennsylvania and southwestern New York, such

as Jamestown, Corry, Meadville, and Warren. As part of her presentation

to the local bank, she would like to better understand the factors that

make a particular outlet profitable. She must do all the work herself,

so she will not be able to study all her outlets. She selects a random

sample of 15 marts and records the average daily sales (Y), the floor

space (area), the number of parking spaces, and the median income of

families in that ZIP code region for each. The sample information is

reported below.

Sampled Mart Daily Sales Store Area Parking Spaces Income ($ Thousands)

1 1840 532 6 44

2 1746 478 4 51

3 1812 530 7 45

4 1806 508 7 46

5 1792 514 5 44

6 1825 556 6 46

7 1811 541 4 49

8 1803 513 6 52

9 1830 532 5 46

10 1827 537 5 46

11 1764 499 3 48

12 1825 510 8 47

13 1763 490 4 48

14 1846 516 8 45

15 1815 482 7 43

Determine the regression equation.

What is the value of R2? Comment on the value.

Conduct a global hypothesis test to determine if any of the independent

variables are different from zero.

Conduct individual hypothesis tests to determine if any of the

independent variables can be dropped.

If variables are dropped, recompute the regression equation and R2.

Chapter 13. Exercise 50 (please work this problem) and answer all

questions

Super Markets, Inc. is considering expanding into the Scottsdale,

Arizona, area. Ms. Luann Miller, Director of Planning, must present an

analysis of the proposed expansion to the operating committee of the

board of directors. As part of her proposal, she needs to include

information on the amount people in the region spend per month on

grocery items. She would also like to include information on the

relationship between the amount spent for grocery items and income. She

gathered the following information.

Household Monthly Amount Monthly Income Household Monthly Amount Monthly

1 $555 $4,388 21 $913

2 489 4,558 22 918

3 458 4,793 23 710

4 613 4,856 24 1,083

5 647 4,856 25 937

6 661 4,899 26 839

7 662 4,899 27 1,030

8 675 5,091 28 1,065

9 549 5,133 29 1,069

10 606 5,304 30 1,064

11 668 5,304 31 1,015

12 740 5,304 32 1,148

13 592 5,346 33 1,125

14 720 5,495 34 1,090

15 680 5,581 35 1,208

16 540 5,730 36 1,217

17 693 5,943 37 1,140

18 541 5,943 38 1,265

19 673 6,156 39 1,206

20 676 6,603 40 1,145

Income

$6,688

6,752

6,837

7,242

7,263

7,540

8,009

8,094

8,264

8,392

8,414

8,882

8,925

8,989

9,053

9,138

9,329

9,649

9,862

9,883

Let the amount spent be the dependent variable and monthly income the

independent variable. Create a scatter diagram, using a software

package.

Determine the regression equation. Interpret the slope value.

Determine the coefficient of correlation. Can you conclude that it is

greater than 0?

---

Chapter 14 Exercise 18 (please work this problem) and give correct answers

18. Fran's Convenience Marts are located throughout metropolitan Erie, Pennsylvania. Fran, the owner, would like to expand into other communities in northwestern Pennsylvania and southwestern New York, such as Jamestown, Corry, Meadville, and Warren. As part of her presentation to the local bank, she would like to better understand the factors that make a particular outlet profitable. She must do all the work herself, so she will not be able to study all her outlets. She selects a random sample of 15 marts and records the average daily sales (Y), the floor space (area), the number of parking spaces, and the median income of families in that ZIP code region for each. The sample information is reported below.

Sampled Mart Daily Sales Store Area Parking Spaces Income ($ Thousands)

1 1840 532 6 44

2 1746 478 4 51

3 1812 530 7 45

4 1806 508 7 46

5 1792 514 5 44

6 1825 556 6 46

7 1811 541 4 49

8 1803 513 6 52

9 1830 532 5 46

10 1827 537 5 46

11 1764 499 3 48

12 1825 510 8 47

13 1763 490 4 48

14 1846 516 8 45

15 1815 482 7 43

1. Determine the regression equation.

2. What is the value of R2? Comment on the value.

3. Conduct a global hypothesis test to determine if any of the independent variables are different from zero.

4. Conduct individual hypothesis tests to determine if any of the independent variables can be dropped.

5. If variables are dropped, recompute the regression equation and R2.

Chapter 13. Exercise 50 (please work this problem) and answer all questions

Super Markets, Inc. is considering expanding into the Scottsdale, Arizona, area. Ms. Luann Miller, Director of Planning, must present an analysis of the proposed expansion to the operating committee of the board of directors. As part of her proposal, she needs to include information on the amount people in the region spend per month on grocery items. She would also like to include information on the relationship between the amount spent for grocery items and income. She gathered the following information.

Household Monthly Amount Monthly Income Household Monthly Amount Monthly

1 $555 $4,388 21 $913

2 489 4,558 22 918

3 458 4,793 23 710

4 613 4,856 24 1,083

5 647 4,856 25 937

6 661 4,899 26 839

7 662 4,899 27 1,030

8 675 5,091 28 1,065

9 549 5,133 29 1,069

10 606 5,304 30 1,064

11 668 5,304 31 1,015

12 740 5,304 32 1,148

13 592 5,346 33 1,125

14 720 5,495 34 1,090

15 680 5,581 35 1,208

16 540 5,730 36 1,217

17 693 5,943 37 1,140

18 541 5,943 38 1,265

19 673 6,156 39 1,206

20 676 6,603 40 1,145

Income

$6,688

6,752

6,837

7,242

7,263

7,540

8,009

8,094

8,264

8,392

8,414

8,882

8,925

8,989

9,053

9,138

9,329

9,649

9,862

9,883

a. Let the amount spent be the dependent variable and monthly income the independent variable. Create a scatter diagram, using a software package.

b. Determine the regression equation. Interpret the slope value.

c. Determine the coefficient of correlation. Can you conclude that it is greater than 0?

Chapter 14 Exercise 18 (please work this problem) and give correct

answers

Fran's Convenience Marts are located throughout metropolitan Erie,

Pennsylvania. Fran, the owner, would like to expand into other

communities in northwestern Pennsylvania and southwestern New York, such

as Jamestown, Corry, Meadville, and Warren. As part of her presentation

to the local bank, she would like to better understand the factors that

make a particular outlet profitable. She must do all the work herself,

so she will not be able to study all her outlets. She selects a random

sample of 15 marts and records the average daily sales (Y), the floor

space (area), the number of parking spaces, and the median income of

families in that ZIP code region for each. The sample information is

reported below.

Sampled Mart Daily Sales Store Area Parking Spaces Income ($ Thousands)

1 1840 532 6 44

2 1746 478 4 51

3 1812 530 7 45

4 1806 508 7 46

5 1792 514 5 44

6 1825 556 6 46

7 1811 541 4 49

8 1803 513 6 52

9 1830 532 5 46

10 1827 537 5 46

11 1764 499 3 48

12 1825 510 8 47

13 1763 490 4 48

14 1846 516 8 45

15 1815 482 7 43

Determine the regression equation.

What is the value of R2? Comment on the value.

Conduct a global hypothesis test to determine if any of the independent

variables are different from zero.

Conduct individual hypothesis tests to determine if any of the

independent variables can be dropped.

If variables are dropped, recompute the regression equation and R2.

Chapter 13. Exercise 50 (please work this problem) and answer all

questions

Super Markets, Inc. is considering expanding into the Scottsdale,

Arizona, area. Ms. Luann Miller, Director of Planning, must present an

analysis of the proposed expansion to the operating committee of the

board of directors. As part of her proposal, she needs to include

information on the amount people in the region spend per month on

grocery items. She would also like to include information on the

relationship between the amount spent for grocery items and income. She

gathered the following information.

Household Monthly Amount Monthly Income Household Monthly Amount Monthly

1 $555 $4,388 21 $913

2 489 4,558 22 918

3 458 4,793 23 710

4 613 4,856 24 1,083

5 647 4,856 25 937

6 661 4,899 26 839

7 662 4,899 27 1,030

8 675 5,091 28 1,065

9 549 5,133 29 1,069

10 606 5,304 30 1,064

11 668 5,304 31 1,015

12 740 5,304 32 1,148

13 592 5,346 33 1,125

14 720 5,495 34 1,090

15 680 5,581 35 1,208

16 540 5,730 36 1,217

17 693 5,943 37 1,140

18 541 5,943 38 1,265

19 673 6,156 39 1,206

20 676 6,603 40 1,145

Income

$6,688

6,752

6,837

7,242

7,263

7,540

8,009

8,094

8,264

8,392

8,414

8,882

8,925

8,989

9,053

9,138

9,329

9,649

9,862

9,883

Let the amount spent be the dependent variable and monthly income the

independent variable. Create a scatter diagram, using a software

package.

Determine the regression equation. Interpret the slope value.

Determine the coefficient of correlation. Can you conclude that it is

greater than 0?