View the step-by-step solution to:

# (See attached file for full problem description) --- Chapter 14 Exercise 18 (please work this problem) and give correct answers 18. Fran's

(See attached file for full problem description)
---
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
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.
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?

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents