Name: BUS 601 Business Analytics For this and all future assignments, please rename the file as Lastname_HA#.xls. The assignments will usually consist of a set of oddnumbered problems from the text. Answers to many even-numbered questions are at the end of the text, so you can refer to them for guidance. In some cases you may need to add additional worksheets so you should make sure you label them so as to make grading easier. Please do not write out the question itself, only the answer. Increase or decrease the size of the answer boxes as necessary to make your complete answer visible. Homework assignment #4: Page p.552 p.553 p.554 Number 14.39 14.41 14.45 Parts All a,b,c (prediction only),e,i a,b,c (prediction only), e,f,g,h,i,j,k,m,n Notes: 14.41 Location variable already converted to Dummy 14.45 Note: The slope for the simple linear regression model of Problem 13.5 is 1.4689, and r2 value in Problem 13.17 (b) is 0.4320. Points 3 5 12 p.552 a. (a) First develop a multiple regression model using X1 as the variable for the SAT score and X2 a dummy variable with X2 = 1 if a student had a grade of B or better in the introductory statistics course. If the dummy variable coefficient is significantly different than zero, you need to develop a model with the interaction term X1 X2 to make sure that the coefficient of X1 is not significantly different if X2 = 0 or X2 = 1. b. If a student received a grade of B or better in the introductory statistics course, the student would be expected to have a grade point average in accountancy that is 0.30 higher than a student who had the same SAT score, but did not get a grade of B or better in the introductory statistics course. Page p.553 Number 14.41 Parts a,b,c,e,i Shelf Space (ft) Sales ($) Aisle Location* 5 160 0 5 220 1 5 140 0 10 190 0 10 240 0 10 260 1 15 230 0 15 270 0 15 280 1 20 260 0 20 290 0 20 310 1 *: 1=placed at the front of the the aisle; 0=placed at the back of the aisle. a. Y=130+7.4*shelf space+45*location b. The regression coefficient of shelf space can be interpreted as; for 1 unit in shelf space, thhe sales increase by 7.4 units. When the location is front of the aisle, the sales are 45 units higher than that of the back side of the aisle. c. Prediction only. The Predict= 197.952 e. The correlation is zero and highly insignifcant as the p value is above 0.05. .576 critical value .05 (two-tail) .708 critical value .01 (two-tail) i. 1- N=12 1- R 2 N-1 N- k-1 ( ) K=2 Adjusted R2=0.833509113 Page p.554 Location City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City City Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Number 14.45 Food Parts a,b,c (prediction only), e,f,g,h,i,j,k,m,n Decor 20 21 23 23 23 19 22 22 27 20 23 20 17 24 27 19 23 19 23 21 22 22 23 20 23 20 21 24 22 22 20 23 22 20 24 21 22 17 25 24 20 23 21 23 20 20 24 21 26 25 22 23 18 25 25 19 25 20 24 18 20 21 23 20 22 26 23 25 21 23 23 19 19 23 22 23 23 19 22 20 22 26 22 24 19 22 20 23 20 26 27 17 25 18 18 20 21 21 19 19 Service 11 21 21 23 18 18 19 21 24 16 22 19 19 22 17 16 19 22 20 16 13 20 21 19 22 23 21 26 19 24 20 15 19 18 19 15 20 16 16 19 21 19 13 20 17 19 21 22 22 20 19 22 21 19 17 22 20 18 19 20 19 17 24 24 23 23 17 17 19 18 19 13 17 18 10 20 24 19 19 17 25 18 18 28 16 16 17 24 16 21 24 19 16 20 21 20 15 18 19 15 18 20 20 22 21 19 21 18 26 22 22 20 18 21 25 19 18 18 20 18 21 21 26 19 21 19 19 23 21 22 20 18 20 21 22 19 22 17 20 22 18 20 21 19 18 19 24 20 26 24 20 23 18 24 23 17 22 20 25 18 22 19 23 18 21 23 23 24 21 22 22 17 22 22 17 21 21 19 21 19 21 21 21 25 19 20 19 24 19 26 27 18 18 22 21 21 20 21 19 18 Summated Rating 49 62 64 68 62 56 62 61 77 58 67 59 54 67 69 54 60 59 63 55 56 63 70 58 66 62 61 73 62 68 60 56 61 59 65 55 64 50 61 65 59 62 55 62 55 58 69 63 74 69 61 68 57 68 65 58 67 58 68 56 61 57 70 62 66 72 63 66 61 63 64 49 58 63 49 64 68 57 62 56 68 65 61 77 54 58 56 71 55 73 78 54 59 60 60 61 56 60 57 52 Coded Location Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 27 53 53 65 47 46 47 51 81 57 63 53 30 63 68 29 44 48 57 29 34 42 76 42 53 30 64 88 57 82 51 38 41 32 69 45 55 38 54 57 31 62 44 44 43 53 45 55 92 92 35 33 48 52 58 51 48 40 48 36 43 42 39 49 38 48 48 56 41 41 47 30 32 54 32 44 48 45 43 36 48 50 48 61 35 30 37 53 36 46 56 44 29 32 46 47 48 35 31 28 Note: The slope for the simple linear regression model of Problem 13.5 is 1.4689, and r2 value in Problem 13.90 (d) is 0.4320. a. State the Multiple Regression Equation b. interpret the regression coefficients in (a) c. Prediction only-- predict the cost for a restaurant what a summated rating of 60 that is located in a city and contstruct a 95% confidence interval estimate the 95% prediction interval. e.Is there significant relationship between price and the two independent variables (summated rating and location) at the 0.05 level of significance? f. At the 0.05 level significance, determine whether each independent variable makes a contribution to the regression model. Indicate the most appropriate regression model for this set of data. g. construct a 95% confidence interval estimate of the population slope for the relationship between cost and summated rating. h. compare the slope in (b) with the slope ofr the simple linear regression model of problem 13.5 pg 481 explain the difference in the results i. Compute and interpret the meaning of the coefficient of multiple determination j. Compute and interpret the adjusted R2 k. compare r2 with the r2 value computed in problem 13.17 (b) on page 487 m. what assumption about the slope of cost with summated rating do you need to make this problem? n. Add an interaction term to the model and at the 0.05 level of significance, determine whether it makes a significant contribution to the model