Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 6 (15 points) A boutique co'ee company serving organic fair trade coffee decides to operate a truck in several areas of Los Angeles. The

image text in transcribed
image text in transcribed
Question 6 (15 points) A boutique co'ee company serving organic fair trade coffee decides to operate a truck in several areas of Los Angeles. The le coffee-truck. csv is available, where each row corresponds to the sales of the truck on a different day. The following variables are provided: Variable Description price The price of coffee on that day promotion A variable that is 1 if there was a promotion on social media on that day1 0 otherwise weekday A variable that is 1 if this observation corresponds to a weekday (Mon / Tue / Wed [Thu / Fri) , 0 otherwise location The location in which the truck operated on that day (one of: Westwood, Studio City, Silver Lake1 Echo Park and Downtown) sales The number of coffees sold on that day Our goal will be to predict the sales quantity sales. Run a linear regression of sales using all of the variables. You can do this in B. using the following commands: coffee.df = read.csv("coffee-truck.csv") coffee.df$location = as.factor(coffee.df$location) coffee.lm = lm(sales " price + promotion + location + weekday, data = coffee.df} summary (coffee . 1m) Answer the following questions: (a) What fraction of the variation in sales is explained by this model? (1 point) [b] \"Which variables are statistically signicant at the o: = 0.05 signicance level? (3 points) (c) W'hat is the interpretation of the intercept? {2 points) (d) W'hat is the interpretation of the slope of price? {1 point) (e) What is the interpretation of the slope of weekday? (2 points) (f) What is the estimate of the stande deviation 0 of the error term E in the true model? {'2 points) (g) Next Saturday1 the truck will be located in Echo Park and will sell coffee for $5.75, with pro motions planned on social media. Mat is the model's prediction for the number of co'ees sold by the truck? {2 points) [h] For the scenario in (g), nd the 99% prediction interval. (2 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Geometry From Euclid To Knots

Authors: Saul Stahl

1st Edition

0486134989, 9780486134987

More Books

Students also viewed these Mathematics questions