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Tutorial 8 Questions

The document presents three case studies involving simple linear regression analyses to explore relationships between various independent and dependent variables. The first case examines the relationship between pizza sales and price, the second between sales and advertising expenditure, and the third between shipping costs and package weight. Each case includes regression statistics, ANOVA results, and specific questions regarding the significance of the relationships and predictions based on the data.

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5 views3 pages

Tutorial 8 Questions

The document presents three case studies involving simple linear regression analyses to explore relationships between various independent and dependent variables. The first case examines the relationship between pizza sales and price, the second between sales and advertising expenditure, and the third between shipping costs and package weight. Each case includes regression statistics, ANOVA results, and specific questions regarding the significance of the relationships and predictions based on the data.

Uploaded by

denisy543
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

BM1200 QUANTITATIVE METHODS AND ANALYTICS

TUTORIAL #8

1) The owner of Original Italian Pizza restaurant chain wants to understand if there is a
relationship between the sales of his specialty deep-dish pizza and its price. Please
answer the following questions according to the simple linear regression results
summarized in the table below.
Regression Statistics
Multiple R 0.3502
R Square 0.1226
Adjusted R
Square 0.0552
Standard Error 1.2800
Observations 15

ANOVA
Significance
df SS MS F F
Regression 1 2.977 2.977 1.817 0.201
Residual 13 21.30 1.64
Total 14 24.28

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 11.776 4.021 2.929 0.012 3.089 20.463
Average Price -0.471 0.350 -1.348 0.201 -1.227 0.284

a) Please identify the independent and dependent variables.


b) Is there evidence of a relationship between sales and price at the 0.05 significance
level?

1
2) The owner of the pizza restaurant chain now wants to understand if there is a
relationship between the sales of his specialty deep-dish pizza (in thousand of units)
and his monthly advertising expenditure (in £1000). Please answer the following
questions according to the simple linear regression results summarized in the table
below.

Regression Statistics
Multiple R 0.5974
R Square 0.3569
Adjusted R
Square 0.3075
Standard Error 1.0958
Observations 15

ANOVA
Significance
df SS MS F F
Regression 1 8.665 8.665 7.216 0.019
Residual 13 15.61 1.20
Total 14 24.28

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 2.338 1.529 1.529 0.150 -0.965 5.641
Ad Expenditures 0.960 0.357 2.686 0.019 0.188 1.731

a) Please identify the independent and dependent variables.


b) Is there evidence of a relationship between sales and monthly advertisement at the
0.05 significance level?
c) Predict sales for a monthly advertisement expenditure of £5,000.

2
3) A regional express delivery service company recently conducted a study to
investigate the relationship between the cost of shipping a package (Y) and the
package weight (X). Twenty packages were randomly selected from among the large
number received for shipment, and a detailed analysis of the shipping cost was
conducted for each package. Please answer the following questions according to the
simple linear regression results summarized in the table below.

Regression Statistics
Multiple R 0.7736
R Square 0.5985
Adjusted R
Square 0.5761
Standard Error 3.1757
Observations 20

ANOVA
Significance
df SS MS F F
Regression 1 270.553 270.553 26.827 0.0001
Residual 18 181.53 10.09
Total 19 452.09

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 0.276 1.368 0.202 0.842 -2.599 3.151
Package Weight 1.493 0.288 5.179 0.0001 0.888 2.099

a) Please identify the independent and dependent variables.


b) Is there evidence of a relationship between sales and monthly advertisement at the
0.05 significance level?
c) Estimate a simple linear regression equation involving shipping cost and package
weight.
d) Interpret the slope coefficient.
e) Interpret the R2 value.

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