Analysis Steps Step 1. Create histogram of Donut Sales. What are your observations?

Step 2. Compute the 5-number summary for Donut Sales: Max, Quartile 3, Median, Quartile 1, Min. Round up the numbers to the nearest dollar.

Step 3. Using the template (Box-Plot.xlsx) create the chart Box-Plot

Step 4. Compute the sample average and sample standard deviation (s) for Donut Sales. Round up the numbers to the nearest dollar.

Step 5. Construct 95% Confidence Interval for Donut Sales. Show work. Round up to the nearest dollar.

Step 6. Your assistant tells you that the sample average Donut Sale for New York is $46,000, and sample standard deviation is $1,100, based on the sample size of 25. Test the hypothesis that the average Donut Sales in New York is the same as in Chicago, against the alternative that it is not (two-sided). Use alpha 5%. We will assume that Donut Sales are a dependent variable. We will assume that Facebook Advertising, Number of Competitors and Newspaper Advertising are independent variables.

Step 7. Create scatter plots for Donut Sales vs. Facebook Advertising, vs. Number of Competitors and vs. Newspaper Advertising. Find the correlation for each case and describe the trends. Do trends make sense, why or why not?

Step 8. Run a regression for Donut Sales vs. Facebook Advertising. What is its R and adjusted R, round up to the 4th decimal digit? Is coefficient for Facebook Advertising statistically significant at alpha 5%?

Step 9. Run a regression for Donut Sales vs. Facebook Advertising and Number of Competitors (i.e. 2 independent variables at the same time). What is its R and adjusted R, round up to the 4th decimal digit? Compare R and adjusted R to the ones in

Step 10. Run a regression Donut Sales vs. Facebook Advertising, Number of Competitors, and Newspaper Advertising. Compare R and adjusted R, round up to the 4th decimal digit, to the ones in Step 9. Does the additional variable, Newspaper Advertising, improve the model relative to the results you saw in Step 9? Is coefficient for Newspaper Advertising statistically significant at alpha 5%?

Step 11. State which of the three different models Model from steps 8, 9, or 10, you intend to use to predict Donut Sales and why?

Step 12. Using the model chosen in Step 11, predict the Donut Sales for the next month, round up to the nearest dollar. You are told that the Facebook Advertising Expense is $105.00, Number of Competitors is 2, and Newspaper Advertising is $50.00.

Step 13. Compute the error of your prediction assuming that the actual donut sales were $50,100. Round up to the nearest dollar.

Step 14. Can we conclude causality between Facebook Advertising and Donut Sales? Why or why not? Step

15. Can we confidently predict results 100 years from now? Why or why not?