A B C D E F
1 Question1: Regression Summary Output
2 Student Population (1000s) and Quaterly Sales Data ($1000s)
3 for 10 Armands Pizza Parlors are given below:
4 Restaurant Population X Actual Sales Y Estm Y cap Residual Y-Ycap
5 1 2 58 70 -12
6 2 6 105 90 15
7 3 8 88 100 -12
8 4 8 118 100 18
9 5 12 117 120 -3
10 6 16 137 140 -3
11 7 20 157 160 -3
12 8 20 169 160 9
13 9 22 149 170 -21
14 10 26 202 190 12
15 Obtain & Provide an interpretation for the following:
SUMMARY OUTPUT
Regression Statistics Suppo
Multiple R 0.893393
30
R Square 0.798151 20
Residuals
Adjusted R 0.77292 10
Standard E 17.634 0
-10 1.5 2 2
Observatio 10 -20
-30
ANOVA
df SS MS F Significance F
Regression 1 9836.737 9836.737 31.63366 0.000496
Residual 8 2487.663 310.9579
Total 9 12324.4
Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 49.93069 21.27398 2.347031 0.046898 0.872802 98.98858 0.872802 98.98858
Support 31.20792 5.548686 5.624381 0.000496 18.41263 44.00321 18.41263 44.00321
RESIDUAL OUTPUT
Observation
Predicted Price
Residuals
1 112.3465 7.653465
2 143.5545 -18.55446
3 143.5545 -13.55446
4 143.5545 -8.554455
5 143.5545 6.445545
6 205.9703 -16.9703
7 205.9703 -15.9703
8 174.7624 20.23762
9 174.7624 25.23762
10 205.9703 14.0297
Support Residual Plot
30
20
Residuals
10
0
-10 1.5 2 2.5 3 3.5 4 4.5 5 5.5
-20
-30
Support
Question2: Regression Summary Output
Outside Magazine tested 10 different models of day hikers & backpacking boots.
The data shows upper support & price for each model tested
{Upper Support rating from 1 to 5 (1 denoting average upper support & 5 denoting excellent upper support)}
Manufacturer and Model Support Price Observation Predicted Price Residuals
Salomon Super Raid 2 120 1 112.346534653 7.65346535
Merrell Chameleon Prime 3 125 2 143.554455446 -18.5544554
Teva Challenger 3 130 3 143.554455446 -13.5544554
Vasque Fusion GTX 3 135 4 143.554455446 -8.55445545
Boreal Maigmo 3 150 5 143.554455446 6.44554455
L.L. Bean GTX Super Guide 5 189 6 205.97029703 -16.970297
Lowa Kibo 5 190 7 205.97029703 -15.970297
Asolo AFX 520 GTX 4 195 8 174.762376238 20.2376238
Raichle Mt. Trail GTX 4 200 9 174.762376238 25.2376238
Scarpa Delta SL M3 5 220 10 205.97029703 14.029703
(a) Obtain & Use the Excel Summary Output to develop an estimated regression equation to estimate price of day hiker
and backpacking boot given the upper support rating.
(b) Would you feel comfortable using the estimated regression equation developed in part (a)
(c) Estimate the price for a day hiker with an upper support rating of 4
Excel Output Summary
ent upper support)} SUMMARY OUTPUT
Regression Statistics
Multiple R 0.8933931727
R Square 0.798151361
Adjusted R S 0.7729202811
Standard Err 17.633999002
Observations 10
ANOVA
df SS MS
Regression 1 9836.7366337 9836.7366
mate price of day hiker Residual 8 2487.6633663 310.95792
Total 9 12324.4
Coefficients Standard Error t Stat
Intercept 49.930693069 21.27398224 2.3470309
Support 31.207920792 5.5486856957 5.6243807
RESIDUAL OUTPUT
Observation Predicted Price Residuals
1 112.34653465 7.6534653465
2 143.55445545 -18.55445545
3 143.55445545 -13.55445545
4 143.55445545 -8.554455446
5 143.55445545 6.4455445545
6 205.97029703 -16.97029703
7 205.97029703 -15.97029703
8 174.76237624 20.237623762
9 174.76237624 25.237623762
10 205.97029703 14.02970297
Support Residual Plot
30
20
10
Residuals
0
-10 1.5 2 2.5 3 3.5 4 4.5 5
-20
-30
Support
F Significance F
31.633658 0.000496
P-value Lower 95% Upper 95%Lower 95.0%Upper 95.0%
0.0468981 0.8728021 98.988584 0.8728021 98.988584
0.000496 18.412629 44.003213 18.412629 44.003213
Residual Plot
3 3.5 4 4.5 5 5.5
Support
Multiple Correlation Analysis Correlation Table
X Y Z
2 5 5 X Y Z
4 8 9 X 1
6 12 8 Y 0.9815302 1
8 15 13 Z 0.3522667 0.4821083 1
11 17 7
Insert Function
Ryx 0.98153
Rzx 0.352267
Rzy 0.482108
3 Variable Regression Model
Agriculture Expend on Expend on
Production Fertiler Irrign Proj
Y X2 X3
6 1 20
10 2 40
11 3 40
19 7 51
20 10 52
25 11 60
30 13 60
Data Analysis Excel Option
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.986742753
R Square 0.973661261
Adjusted R Squ 0.960491891
Standard Error 1.724098277
Observations 7
ANOVA
df SS MS F Significance F
Regression 2 439.538511949 219.76926 73.933778 0.0006937
Residual 4 11.8900594798 2.9725149
Total 6 451.428571429
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0%
Intercept 1.349026163 3.52291641186 0.3829288 0.721252 -8.4321579 11.13021 -8.432157864
X2 1.399992225 0.34845837612 4.0176742 0.015895 0.4325167 2.3674678 0.4325166721
X3 0.141663103 0.11788098377 1.2017469 0.2957446 -0.185627 0.4689532 -0.185626977
RESIDUAL OUTPUT
Observation Predicted Y Residuals
1 5.582280449 0.4177195506
2 9.815534735 0.18446526455
3 11.21552696 -0.2155269603
4 18.37378999 0.62621000661
5 22.71542977 -2.715429771
6 25.24872682 -0.2487268204
7 28.04871127 1.95128872993
X3 Residual Plot
3
2
Residuals
1
0
-1 15 20 25 30 35 40 45 50 55 60 65
-2
-3
X3
X2 Residual Plot
3
2
Residuals
1
0
-1 0 2 4 6 8 10 12 14
-2
-3
X2
Problem FM5**
Fit an appropriate (3 Variable) regression model to the following data {Y Agricultural
Production; X2 Expenditure on Fertilizer; X3 Expenditure on Irrigation Projects}
--------------------------------------------------------------------------------
Y 6 10 11 19 20 25 30
--------------------------------------------------------------------------------
X2 1 2 3 7 10 11 13
--------------------------------------------------------------------------------
X3 20 40 40 51 52 60 60
--------------------------------------------------------------------------------
Suggested Interpretations / Observations
We define the following 3 Variable Regression Model
ˆ β̂ β̂ X β̂ X
i 1 2 2i 3 3i
Y - Agriculture Production, X2 - Expense on Fertilizer, X3 - Expenses on Irrigation
Project
1. Interpretation of Partial Regression Coefficients
2. Interpretation of R
3. Interpretation of R2
4. Interpretation of 95% confidence level for β̂ 2
5. Interpretation of p value (t test)
6. Interpretation of p value (F test)
Upper 95.0%
11.130210191
2.3674677776
0.4689531834
ural
es on Irrigation
Showtime
Question: Regression Summary Output
Show Time Movie Theaters would like to estimate weekly gross revenue as a function of
Television Advertising & Newspaper Advertising. Historical data for 8 weeks are given below:
Weekly Gross
Televison
Advertising Newspaper X3($1
Residuals
Revenue X2($1000s) Advertising Residual -1
Y($1000s) X3($1000s) Estm Y cap Y-Ycap 1.0 1.5 2
96 5.0 1.5
90 2.0 2.0
95 4.0 1.5
92 2.5 2.5
X2($10
Residuals
95 3.0 3.3 -1
1.5 2.0 2.5
94 3.5 2.3
94 2.5 4.2
94 3.0 2.5
(a) Develop an estimated Regression equation with the amount of television advertising as independent variable
(b) Is the estimated regression equation coefficient for Television advertising same in 2 Var & 3 Var Model? Interprete the coefficients in ea
(c ) What is the estimate of the weekly gross revenue for a week when $3500 is spent on Telivision Advertising & $1800 is spent on Newsp
(d) Does the estimated regression equation provide a good fit to the data? Explain
(e ) Use the F Test to determine the overall significance of the relationship. What is the conclusion at 0.05 level of significance
(f) Use the t Test to determine the significance of each independent variable. What is the conclusion at 0.05 level of significance
(g) Obtain Residual Plot (y - y cap) against y cap to determine whether assumed regression model is appropriate
(where y is the observed value of dependent variale, y cap is the predicted value of dependent variable)
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Excel Output Summary
Newspaper SUMMARY OUTPUT
Advertising
X3($1000s) Residual Plot
Residuals
-1
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Regression Statistics
Televison Newspaper Multiple R
Advertising
Advertising X3($1000s)
R Square
Adjusted R Sq
X2($1000s) Residual Plot Standard Error
Residuals
-1 Observations
1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5
Televison
Advertising ANOVA
X2($1000s)
independent variable Regression
Interprete the coefficients in each case. Residual
ng & $1800 is spent on Newspaper Advertising? Total
el of significance
evel of significance Intercept
Televison
Advertising
model is appropriate X2($1000s)
ndent variable)
RESIDUAL OUTPUT
Observation
1
2
3
4
5
6
7
8
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three variable model
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.958663444
R Square 0.9190356
Adjusted R Sq 0.88664984
Standard Error0.642587303
Observations 8
ANOVA
df
Regression 2
Residual 5
Total 7
Coefficients
Intercept 83.23009169
Televison
Advertising
X2($1000s) 2.290183621
Page 15
Showtime
Newspaper
Advertising
X3($1000s) 1.300989098
RESIDUAL OUTPUT
Predicted
Weekly Gross
Revenue
Observation Y($1000s)
1 96.63249344
2 90.41243713
3 94.34230982
4 92.20802349
5 94.39390658
6 94.23800929
7 94.41970496
8 93.3531153
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xcel Output Summary
UMMARY OUTPUT
Regression Statistics
0.807807408
0.652552809
0.594644943
1.215175116
8
df SS MS F Significance F
1 16.64009662 16.64009662 11.26881134 0.015288079
6 8.859903382 1.476650564
7 25.5
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0%
88.63768116 1.582367131 56.01587609 2.174E-09 84.76576827 92.50959405 84.76576827
1.603864734 0.47778079 3.356905024 0.015288079 0.434777257 2.772952212 0.434777257
ESIDUAL OUTPUT
Predicted
Weekly Gross
Revenue
Y($1000s) Residuals
96.65700483 -0.65700483
91.84541063 -1.84541063
95.0531401 -0.0531401
92.647343 -0.647343
93.44927536 1.550724638
94.25120773 -0.25120773
92.647343 1.352657005
93.44927536 0.550724638
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SS MS F Significance F
23.43540779 11.7177039 28.37776839 0.001865242
2.064592208 0.412918442
25.5
Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
1.573868952 52.88247894 4.57175E-08 79.18433275 87.27585063 79.18433275 87.27585063
0.304064556 7.531899313 0.000653232 1.508560796 3.071806446 1.508560796 3.071806446
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0.320701597 4.056696662 0.009760798 0.476599398 2.125378798 0.476599398 2.125378798
Residuals
-0.63249344
-0.41243713
0.657690179
-0.20802349
0.606093423
-0.23800929
-0.41970496
0.646884701
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Televison
Advertising
X2($1000s) Residual Plot
2
Residuals
0
-2 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5
-4
Televison
Advertising
X2($1000s)
Upper 95.0%
92.50959405
2.772952212
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5.0 5.5
Page 21
% of Classes Student/Faculty Alumni Giving
Rate
School Under 20 Ratio
Boston College 39 13 25 Data for 48 National Universities
Brandeis University 68 8 33 Percentage of classes offered with fewer than 20 students
Brown University 60 8 40 Number of Students enrolled divided by the total number of faculty
California Institute of Technology 65 3 46 Percentage of Alumini that made a donation to the University
Carnegie Mellon University 67 10 28
Case Western Reserve Univ. 52 8 31
College of William and Mary 45 12 27
Columbia University 69 7 31
Cornell University 72 13 35
Dartmouth College 61 10 53
Duke University 68 8 45
Emory University 65 7 37
Georgetown University 54 10 29
Harvard University 73 8 46
John Hopkins University 64 9 27
Lehigh University 55 11 40
Massachusetts Inst. of Technology 65 6 44
New York University 63 13 13
Northwestern University 66 8 30
Pennsylvania State Univ. 32 19 21
Princeton University 68 5 67
Rice University 62 8 40
Stanford University 69 7 34
Tufts University 67 9 29
Tulane University 56 12 17
U. of California-Berleley 58 17 18
U. of California-Davis 32 19 7
U. of California-Irvine 42 20 9
U. of California-Los Angeles 41 18 13
U. of California-San Diego 48 19 8
U. of California-Santa Barbara 45 20 12
U. of Chicago 65 4 36
U. of Florida 31 23 19
U. of Illinois-Urbana Champaign 29 15 23
U. of Michigan-Ann Arbor 51 15 13
U. of North Carolina-Chapel Hill 40 16 26
U. of Notre Dame 53 13 49
U. of Pennsylvania 65 7 41
U. of Rochester 63 10 23
U. of Southern California 53 13 22
U. of Texas-Austin 39 21 13
U. of Virginia 44 13 28
U. of Washington 37 12 12
U. of Wisconsin-Madison 37 13 13
Vanderbuilt University 68 9 31
Wake Forest University 59 11 38
Washington University-St. Louis 73 7 33
Yale University 77 7 50
with fewer than 20 students
ivided by the total number of faculty
de a donation to the University
