EP BASIC BUS.STATS-ACCESS (18 WEEKS)
14th Edition
ISBN: 9780135989005
Author: BERENSON
Publisher: PEARSON CO
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Chapter 13, Problem 38PS
The owners of a chain of ice cream stores have the business objective of improving the forecast of daily sales so that staffing shortages can be minimized during the summer season. As a starting point, the owners decide to develop a simple linear regression model to predict daily sales based on atmospheric temperature. They select a sample of 21 consecutive days and store the results in IceCream.
a. Assuming a linear relationship, use the least-squares method to compute the regression coefficients
b. Predict the sales for a day in which the temperature is
c. Plot the residuals versus the time period.
d. Compute the Durbin-Watson statistic. At the 0.05 level of significance, is there evidence of positive autocorrelation among the residuals?
e. Based on the results of (c) and (d), is there reason to question the validity of the model?
f. What conclusions can you reach concerning the relationship between sales and atmospheric temperature?
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The production of wine is a multibillion-dollar worldwide industry. In an attempt to develop a model of wine quality as judged by wine experts, data was collected from red wine variants of a certain type of wine. A sample of 12 wines is given. Develop a simple linear regression model to predict wine quality, measured on a scale from 0 (very bad) to 10 (excellent), based on alcohol content (%).
b. For these data, b0=4.4 and b1=0.2. Interpret the meaning of the slope,
b1, in this problem. Choose the correct answer below.
A.
The slope, b1, implies that for each increase of 1 wine quality rating, the alcohol content is expected to increase by the value of b1, in percentages.
B.
The slope, b1, implies that the alcohol content is equal to the value of b1,in percentages.
C.
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Suppose Tatiyana is interested in the relationship between language ability and time spent reading. She randomly selects a sample of 30 students from the local high school and collects their scores from a language aptitude test. She surveys the sample asking each student how many hours per month he or she spends reading.
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Chapter 13 Solutions
EP BASIC BUS.STATS-ACCESS (18 WEEKS)
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