1. Write the regression equation for predicting Marryland Chicken sales 2. Give an interpretation for each of the estimated regression coefficients for each of the variables used in the model 3. Perform a T-test, to identify which of the independent variables (if any) are statistically significant in explaining Marryland Chicken sales 4. What proportion of the variation in Marryland Chicken sales is explained by the regression equation?

QUESTION 1 (CLO 2) Marryland Chicken, a fast food restaurant chain, conducted a study of the factors affecting demand (sales). The following variables were defined and measured for a random sample of 30 of its outlets: Y = Annual sales ($ '000) X1 = Disposable personal income (per capita) of residents within a 5-mile radius X2 = Smoking area (0 = No, 1 = Yes) X3 = Location (within one-half mile from highway (0 = No, 1 = Yes) X4 = Population (within a 5-mile radius) X5 = Number of competing restaurants within a 2-mile radius. The data were entered into a computerised regression program and the following results were obtained: Table 1: SUMMARY OUTPUT Multiple R 0.889 R-Square 0.79 Standard Error 0.40 Observations 30 Table 2: Analysis of Variance (ANOVA) DF Sum Squares Mean Squares F-stat Regression 5 326.13 65.226 18.17 Residual 24 86.17 3.590 Total 29 412.30 Table 3: Regression Coefficients, Standard Error & T-Value Variable Coefficient Std. Error T-value Intercept (a) 0.363 0.196 1.852 X1 0.00275 0.00104 2.644 X2 76.65 93.70 0.818 X3 164.3 235.4 0.698 X4 0.00331 0.00126 2.627 X5 -46.2 12.1 -3.818