Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ice Cream Sales Model An owner of an ice cream stand collected 90 days worth of data from last summer. She is attempting to fit
Ice Cream Sales Model An owner of an ice cream stand collected 90 days worth of data from last summer. She is attempting to fit a model predicting daily ice cream sales to better operate the stand next summer. She considers the following model: Model 1: Sales;= Bo + B1*Hours;+ 32*HighTemp; + 3*(Hours/'HighTemp) + &; Here, Sales; is the sales in dollars on the ith day, Hours; is the number of hours the stand was open on the ith day, HighTemp; is the high temperature on the ith day, and Hours/ HighTemp denotes the interaction between hours and high temperature. She fits this model using linear regression. The regression output is as follows: Call: 1m(formula = Income ~ Hours + HighTemp + Hours * HighTemp) Residuals : Min 10 Median 30 Max -68. 110 -15.579 2.773 17. 245 51. 604 Coefficients : Estimate Std. Error t value Pr(>It|) (Intercept) 14.5877 108 . 1674 0. 135 0. 8930 Hours 12. 2728 14. 6225 0. 839 0. 4036 HighTemp 0. 7198 1. 2264 0. 587 0. 5588 Hours : HighTemp 0. 3364 0. 1650 2. 038 0. 0446 * Signif. codes : 0 ' ***' 0. 001 '** ' 0.01 '* ' 0. 05 ' . ' 0.1 ' ' 1 Residual standard error: 25.09 on 86 degrees of freedom Multiple R-squared: 0. 9095, Adjusted R-squared: 0.9063 F-statistic: 288 on 3 and 86 DF, p-value:
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