Question
A toaster company wanted to see if they could predict customer satisfaction levels based on the price of the toaster. They collected a random sample
A toaster company wanted to see if they could predict customer satisfaction levels based on the price of the toaster. They collected a random sample of 6 toasters and compared the price and the percentage of customers who were satisfied. Then they used this data to run a simple linear regression analysis.
The regression run on Excel using the data shown gave the output shown below the data.
Price | Customer Satisfaction | |||||||
13 | 72 | |||||||
35 | 84 | |||||||
31 | 76 | |||||||
38 | 94 | |||||||
43 | 93 | |||||||
46 | 97 | |||||||
SUMMARY OUTPUT | ||||||||
Regression Statistics | ||||||||
Multiple R | 0.903562019 | |||||||
R Square | 0.816424323 | |||||||
Adjusted R Square | 0.770530403 | |||||||
Standard Error | 4.950490172 | |||||||
Observations | 6 | |||||||
ANOVA | ||||||||
df | SS | MS | F | Significance F | ||||
Regression | 1 | 435.9705882 | 435.9705882 | 17.78937894 | 0.013501976 | |||
Residual | 4 | 98.02941176 | 24.50735294 | |||||
Total | 5 | 534 | ||||||
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
Intercept | 58.73529412 | 6.772852103 | 8.672165466 | 0.000972952 | 39.93084205 | 77.53974619 | 39.93084205 | 77.53974619 |
Price | 0.794117647 | 0.188280115 | 4.217745718 | 0.013501976 | 0.271368244 | 1.31686705 | 0.271368244 | 1.31686705 |
What percentage of the variation in customer satisfaction is explained by variation in price? Enter your answer as a percentage but do not enter a % symbol in your answer, just the number. No decimals are necessary.
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