Question
A yard maintenance firm is trying to predict the cost of cleaning up the parking lots of shopping malls where the firm has a maintenance
A yard maintenance firm is trying to predict the cost of cleaning up the parking lots of shopping malls where the firm has a maintenance contract. The firm has gathered information on maintenance costs (in thousands of dollars), the number of stores in the mall (Stores), the number of square metres in the parking lot (Area), and the distance of the mall from the firms maintenance depot (Distance). A regression printout from Excel appears below.
Excel Printout
SUMMARY OUTPUT |
| |||||
Regression Statistics |
| |||||
Multiple R R Square Adjusted R Square Standard Error Observations | 0.8574 |
| ||||
0.7352 |
| |||||
0.6822 |
| |||||
1.3276 |
| |||||
19 |
| |||||
ANOVA |
| |||||
| df | SS | MS | F | Significance F | |
Regression | 3 | 73.39 | 24.46 | 13.88 | 0.000133378 |
|
Residual | 15 | 26.44 | 1.76 |
| ||
Total | 18 | 99.83 |
|
|
|
|
Regression Output |
| |||||
Variables | Coefficients | Standard Error | t Stat | P-value |
| |
Intercept | 0.8356 | 2.1712 | 0.38 | 0.7091 |
| |
Stores | 0.4145 | 0.1538 | 2.70 | 00166 |
| |
Area | -0.0032 | 0.0010 | -0.32 | 0.7562 |
| |
Distance | 0.1645 | 0.0910 | 1.81 | 0.0907 |
|
The multiple regression equation is:
Y=0.8356(Intercept) + 0.4145(stores) - 0.0032(Area) + 0.1645(Distance) | ||
Y=0.8356 + 0.4145(stores) - 0.0032(Area) + 0.1645(Distance) | ||
Y=0.38(Intercept) + 2.70(stores) 0.32(Area) + 1.81(Distance) | ||
Y=0.38 + 2.70(stores) 0.32(Area) + 1.81(Distance) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started