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Costco has witnessed an increase in the cost of its hotdog across the country on a state by state basis. The company wants to find
Costco has witnessed an increase in the cost of its hotdog across the country on a state by state basis. The company wants to find out the key factors affecting this increase cost within its various cities. |
Its marketing team believes it's the inflation rate for every city while its sales department believe its average transportation cost of goods in the cities. The inventory department believes its average cost of bread in the city while the meat department thinks its the mean cost of a pound of Kobe beef. |
The company has asked its data department to analyze the cost based on each department's suggestion. |
The unit cost for inflation is in percent (%), transportation, bread and beef cost in dollars ($) |
Use the data collected by Costco company from a sample of 21 of its stores in different cities to answer questions (a)- |
a) Find the regression model. |
b) At 2% level of significance can you conclude that there is a relationship between the cost of hotdogs and transportation cost, inflation cost, cost of beef and cost of bread? |
C) What is the likely a cost of hotdog in a store if the inflation rate in the city is 1.91, the transportation cost in the city is $220 , the cost of bread in the city is $1.28 , the cost of beef is $19.4 |
Stores | cost of hotdogs | Inflation rate | Transportation cost | Cost of beef | Cost of bread |
1 | 2.56 | 2.5 | 320 | 23.5 | 1.45 |
2 | 2.76 | 2.6 | 350 | 25.8 | 1.55 |
3 | 2.95 | 2.8 | 475 | 28.7 | 1.62 |
4 | 3.00 | 3.1 | 500 | 30.5 | 1.68 |
5 | 3.15 | 3.2 | 622 | 32.7 | 1.73 |
6 | 3.22 | 3.8 | 800 | 37.88 | 1.86 |
7 | 3.45 | 4.2 | 950 | 41.25 | 1.89 |
8 | 3.89 | 5.2 | 1000 | 45.28 | 1.93 |
9 | 2.76 | 2.7 | 300 | 21.84 | 1.37 |
10 | 2.88 | 2.7 | 362 | 27.4 | 1.6 |
11 | 2.89 | 2.75 | 362 | 26.7 | 1.59 |
12 | 2.91 | 2.78 | 422 | 27.1 | 1.61 |
13 | 2.93 | 2.79 | 468 | 29.3 | 1.64 |
14 | 4.00 | 5.5 | 1200 | 47.1 | 1.97 |
15 | 4.15 | 5.8 | 1350 | 49 | 2.02 |
16 | 4.38 | 6.2 | 1400 | 52 | 2.04 |
17 | 4.50 | 7.1 | 1450 | 55 | 2.08 |
18 | 2.05 | 1.8 | 200 | 18.5 | 1.22 |
19 | 2.20 | 1.95 | 240 | 19.8 | 1.35 |
20 | 2.33 | 2.1 | 282 | 20 | 1.41 |
21 | 2.50 | 2.4 | 305 | 22.8 | 1.43 |
Please solve using excel and show formulas.
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