Question
a. Determine the sample correlation coefficient, r, between Sales Revenue and Store Count. b. Test the alternative hypothesis that there is a linear relationship between
a. Determine the sample correlation coefficient, r, between Sales Revenue and Store Count.
b. Test the alternative hypothesis that there is a linear relationship between these two variables. What are the test statistic and the p-value for that test statistic? For = .05, what do you conclude about the relationship between the two variables?
c. Now estimate a simple linear regression to predict the Sales Revenue using only Store Count. Write the estimated regression equation. d. How well does the model fit the dependent variable? Cite the appropriate measure from the regression output, and interpret that measure.
Company Name | Sales Revenue ($ millions) | Store Count | Franchisee-Owned Store Count | Company-Owned Store Count |
mcdonalds | 40413 | 13846 | 13154 | 692 |
starbucks | 21550 | 15041 | 6768 | 8273 |
chick_fil_a | 11000 | 2500 | 2500 | 0 |
taco_bell | 11000 | 7089 | 6622 | 467 |
burger_king | 10300 | 7346 | 7294 | 52 |
subway | 10000 | 23802 | 23802 | 0 |
wendys | 9865 | 5852 | 5495 | 357 |
dunkin | 9220 | 9630 | 9630 | 0 |
dominos | 7100 | 6157 | 5815 | 342 |
panera_bread | 5925 | 2225 | 1202 | 1023 |
chipotle | 5520 | 2580 | 0 | 2580 |
pizza_hut | 5380 | 7416 | 7393 | 23 |
kfc | 4820 | 4065 | 4009 | 56 |
sonic_drive_in | 4687 | 3526 | 3329 | 197 |
arbys | 3885 | 3359 | 2170 | 1189 |
little_caesars | 3850 | 4213 | 3652 | 561 |
panda_express | 3800 | 2184 | 138 | 2046 |
dairy_queen | 3760 | 4381 | 4379 | 2 |
popeyes_chicken | 3750 | 2499 | 2458 | 41 |
jack_in_the_box | 3505 | 2243 | 2106 | 137 |
papa_johns | 2655 | 3142 | 2544 | 598 |
whataburger | 2566 | 830 | 127 | 703 |
jimmy_johns | 2105 | 2787 | 2735 | 52 |
hardees | 2070 | 1830 | 1713 | 117 |
zaxbys | 1840 | 904 | 755 | 149 |
culvers | 1730 | 733 | 726 | 6 |
five_guys | 1662 | 1368 | 872 | 496 |
raising_canes | 1466 | 457 | 86 | 371 |
wingstop | 1400 | 1231 | 1200 | 31 |
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