Chris Gill founded Gills Grill over 20 years ago. The business has grown so much and been

Chris Gill founded Gill’s Grill over 20 years ago. The business has grown so much and been so successful that Chris is now considering selling franchises. Chris knows that potential franchisees will want access to certain operational data. Gill’s Grill is probably best known for its incredible “potato flats,” a French fry-like item served with a special secret sauce. Chris is concerned that some of the potato flats data are unusual and out of the ordinary. The following production data related to “potato flats” have been compiled.

Required
A. Should Chris remove some of the data? In other words, are any of the months unusual relative to the others? If so, identify likely outliers from the data and state reasons why you would remove them.
B. Do you think removing the data points would change the regression output? Perform a regression analysis to find out the correctanswer.

Transcribed Image Text:

Pounds of Potatoes 20,000 25,000 27,000 22,000 24,000 30,000 22,000 23,000 34,000 Food Preparation Costs $17,000 11,000 27,000 18,000 30,000 24,000 18,000 18,500 26,000 Janua February March ril May June July August September Regression Output Coefficient of intercept R square X coefficient 4,104.372 0.244367 0.672073