Practical Management Science
6th Edition
ISBN: 9781337671989
Author: WINSTON
Publisher: Cengage
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Chapter 13.4, Problem 17P
The owner of a restaurant in Bloomington, Indiana, has recorded sales data for the past 19 years. He has also recorded data on potentially relevant variables. The data are listed in the file P13_17.xlsx.
- a. Estimate a simple regression equation involving annual sales (the dependent variable) and the size of the population residing within 10 miles of the restaurant (the explanatory variable). Interpret R-square for this regression.
- b. Add another explanatory variable—annual advertising expenditures—to the regression equation in part a. Estimate and interpret this expanded equation. How does the R-square value for this multiple regression equation compare to that of the simple regression equation estimated in part a? Explain any difference between the two R-square values. How can you use the adjusted R-squares for a comparison of the two equations?
- c. Add one more explanatory variable to the multiple regression equation estimated in part b. In particular, estimate and interpret the coefficients of a multiple regression equation that includes the previous year’s advertising expenditure. How does the inclusion of this third explanatory variable affect the R-square, compared to the corresponding values for the equation of part b? Explain any changes in this value. What does the adjusted R-square for the new equation tell you?
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What is the sales forecast for month 13?
1
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2
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3
546
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549
5
550
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548
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552
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553
12
553
After graduation, you take a position at Top-Slice, a well-known manufacturer of golf balls. One of your duties is to
forecast monthly demand for golf balls. Using the following data, you developed a regression model that expresses
monthly sales as a function of average temperature for the month:
Monthly sales=-202.2+86.5x (average temperature)
Click the icon to view the additional data.
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More Info
March 2017
April
May
June
July
August
September
October
November
December
January 2018
February
Monthly Sales
5,300
3,990
5,700
6,520
7,600
7,420
Print
6,710
4,870
3,990
3,900
3,320
2,670
Temperature
51
56
Done
64
80
79
87
83
67
58
41
39
40
X
Chapter 13 Solutions
Practical Management Science
Ch. 13.3 - The file P13_01.xlsx contains the monthly number...Ch. 13.3 - The file P13_02.xlsx contains five years of...Ch. 13.3 - The file P13_03.xlsx contains monthly data on...Ch. 13.3 - The file P13_04.xlsx lists the monthly sales for a...Ch. 13.3 - Management of a home appliance store wants to...Ch. 13.3 - Do the sales prices of houses in a given community...Ch. 13.3 - Prob. 7PCh. 13.3 - The management of a technology company is trying...Ch. 13.3 - Prob. 9PCh. 13.3 - Sometimes curvature in a scatterplot can be fit...
Ch. 13.4 - Prob. 12PCh. 13.4 - A trucking company wants to predict the yearly...Ch. 13.4 - An antique collector believes that the price...Ch. 13.4 - Stock market analysts are continually looking for...Ch. 13.4 - Suppose that a regional express delivery service...Ch. 13.4 - The owner of a restaurant in Bloomington, Indiana,...Ch. 13.6 - The file P13_19.xlsx contains the weekly sales of...Ch. 13.6 - The file P13_20.xlsx contains the monthly sales of...Ch. 13.6 - The file P13_21.xlsx contains the weekly sales of...Ch. 13.6 - The file P13_22.xlsx contains total monthly U.S....Ch. 13.7 - You have been assigned to forecast the number of...Ch. 13.7 - Simple exponential smoothing with = 0.3 is being...Ch. 13.7 - The file P13_25.xlsx contains the quarterly...Ch. 13.7 - The file P13_26.xlsx contains the monthly number...Ch. 13.7 - The file P13_27.xlsx contains yearly data on the...Ch. 13.7 - The file P13_28.xlsx contains monthly retail sales...Ch. 13.7 - The file P13_29.xlsx contains monthly time series...Ch. 13.7 - A version of simple exponential smoothing can be...Ch. 13 - Prob. 31PCh. 13 - Prob. 32PCh. 13 - Management of a home appliance store would like to...Ch. 13 - A small computer chip manufacturer wants to...Ch. 13 - The file P13_35.xlsx contains the amount of money...Ch. 13 - Prob. 36PCh. 13 - Prob. 37PCh. 13 - Prob. 39PCh. 13 - The Baker Company wants to develop a budget to...Ch. 13 - Prob. 41PCh. 13 - The file P13_42.xlsx contains monthly data on...Ch. 13 - Prob. 43PCh. 13 - Prob. 44PCh. 13 - Prob. 45PCh. 13 - Prob. 46PCh. 13 - Prob. 49P
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