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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)

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