A regional manager of Acme Markets would like to develop a model to predict weekly sales of pet food based on the shelf space. The data from nine randomly selected stores can be found in this file. You should use Excel to complete the work below, as shown in the exercises. a) construct a scatter plot b) calculate the correlation coefficient and interpret it c) run a regression model in Excel, point out in the output what the intercept and slope coefficients are d) write out the regression equation e) provide an interpretation for the value of the slope coefficient f) what is the result of the hypothesis test for the slope coefficient? (assuming at α = 0.05) g) point out in the regression output what the sample coefficient of determination is and interpret it h) what is the result of the hypothesis test for the coefficient of determination? (assuming at α = 0.05)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
A regional manager of Acme Markets would like to develop a model to predict weekly sales of pet food based on the shelf space. The data from nine randomly selected stores can be found in this file. You should use Excel to complete the work below, as shown in the exercises.
a) construct a
b) calculate the
c) run a regression model in Excel, point out in the output what the intercept and slope coefficients are
d) write out the regression equation
e) provide an interpretation for the value of the slope coefficient
f) what is the result of the hypothesis test for the slope coefficient? (assuming at α = 0.05)
g) point out in the regression output what the sample coefficient of determination is and interpret it
h) what is the result of the hypothesis test for the coefficient of determination? (assuming at α = 0.05)
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