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Question

Trader Food Cooperative (TFC) is a member-owned local business that conveniently provides fresh, natural grocery

items of the highest quality and best value to its members. Over the past few quarters, the board of directors for TFC has noticed a drop off in the average household amount spent on groceries each visit.


To better understand the current market, a direct mail survey was sent to the over 2,500 households within a 15-mile radius of TFC.


The data set is attached. Descriptions of the variables are provided below.

  • Food Exp: Avg. household amount spent on groceries each visit at any brick and mortar grocery store, in US dollars
  • Shopping LH: Likelihood of shopping at TFC; measured using a seven point Likert Scale (1=very unlikely, 7=very likely)
  • HH Size: Number of persons living in household
  • HH Inc: Household income received prior year, in $K
  • Highest Ed Head: Highest level of educational attainment for the head of household
  • Age Head: Age ranges of the head of household in years
  • Shopping Time: Avg. amount of time spent each week shopping for groceries in a brick and mortar grocery store, in minutes
  • Kid <6: One or more children in household less than 6 years old
  • Kid 6-18: One or more children in household 6-18 years old
  • Eating Healthy: Response to question "Eating healthy, nutritious food is important to me." Measured using seven point Likert scale: 1=strongly disagree, 7=strongly agree


TFC has approached you to analyze the data and provide guidance on what they should do to increase the average household amount spent on groceries each visit.


I was supposed to use multiple regression for my analysis. How do I interpret the results of multiple regression and make a recommendation on what would increase average household amount spent on groceries each visit? The a picture of the Excel output is attached.Multiple Regression Output.jpg

Multiple Regression Output.jpg

co Wrap Text
General
Sha
E Merge &amp; Center
% 9
Conditional Format as Cell
Formatting ~ Table ~ Styles
Insert Delete Format
Alignment
Sort &amp; Find
Number
Filter ~ Sele
Styles
Cells
Editing
M
O
Regression Statistics
Q
R
S
Multiple R
0.936484
R Square
0.877001
Adjusted R Squar
0.87659
Standard Error
5.949697
Observations
1202
ANOVA
of
SS
MS
Significance F
Regression
4 302123.4 75530.84 2133.706
0
Residual
1197 42372.47 35.39889
Total
1201 344495.8
Coefficientsandard Errc t Stat
P-value
Lower 95%
Upper 95% Lower 95.0% Upper 95.0%
0.5187
Intercept
0.570324 0.883482 0.645541
-1. 163021498 2.303669 -1.163021498 2.303668885
0.814802 0.098764 8.249999 4.14E-16
0.621032558 1.008572 0.621032558 1.008571832
HH Size
0.987005086 1.030901 0.987005086 1.030900889
HH Inc
1.008953 0.011187 90.19145
0
4.706876852
6.07726 4.706876852 6.077259697
Kid &lt;6 (Y/N)
5.392068 0.34924 15.43942 3.52E-49
0.214047437 1.565182
0.214047437 1.565182219
Grad/Prof
0.889615 0.344335 2.583573 0.009896

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