Question
REGRESSION ANALYSIS The owner of large chain of ice-cream stores would like to study the effect of atmospheric temperature on sales during the summer season.Temperature
REGRESSION ANALYSIS
The owner of large chain of ice-cream stores would like to study the effect of atmospheric temperature on sales during the summer season.Temperature is the independent variable.A random sample of 21 days is selected with the results given as follows:
DAILY HIGH
SALES PER
TEMPERATURE (X)
STORE (Y)
DAY
( F)
1
48
25000
2
60
28000
3
63
28500
4
75
30500
5
80
33600
6
82
32500
7
85
36800
8
88
39000
9
90
41000
10
91
43600
11
92
44000
12
65
29200
13
98
46500
14
100
48000
15
92
38700
16
87
38300
17
84
35800
18
88
38600
19
80
32600
20
82
31400
21
76
39800
MINITAB PRINTOUT
Regression Analysis: SALES PER STOREversus DAILY HIGH TEMPE
The regression equation is
SALES PER STORE (Y) = 812 + 436 DAILY HIGH TEMPERATURE (X)
PredictorCoefSE CoefTP
Constant81241290.200.846
DAILY HIGH TEMPERATURE (X)436.3250.228.690.000
S = 2930.58R-Sq = 79.9%R-Sq(adj) = 78.8%
Analysis of Variance
SourceDFSSMSFP
Regression164837403364837403375.500.000
Residual Error191631773958588284
Total20811551429
Pearson correlation of SALES PER STORE (Y) and DAILY HIGH TEMPERATURE (X) = 0.894
1. What is the linear regression equation on the Minitab printout?
2. What is the dependent variable?
3. What is the independent variable?
4. What is the coefficient of correlation?Is the relationship strong, moderate, or weak?
5. What percentage of the variation in sales can be explained by the variation in temperature?
6. What is the slope and what does it mean in terms of this problem?
7. What is the y intercept and what does it mean in terms of this problem?
8. Conduct a hypothesis test to determine if there is positive correlation at the .05 significance level.Show all 6 steps.
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