Statistical Techniques in Business and Economics
18th Edition
ISBN: 9781260579611
Author: Douglas Lind; William Marchal; Samuel Wathen
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 14, Problem 28CE
a.
To determine
Find the regression equation.
Explain the change of amount of tip for another dinner.
b.
To determine
Perform a global test to find whether at least one of the independent variables is significant.
Draw the conclusions.
c.
To determine
Perform individual test for each of the variables.
Explain one or the other can be deleted.
d.
To determine
Find the coefficient of determination and interpret the value.
e.
To determine
Plot the residuals in a histogram.
Also explain whether it is reasonable that the residuals follow normal assumptions.
f.
To determine
Plot the residuals against the fitted values.
Explain whether it is reasonable to conclude that they are random.
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A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows:
Cars (1000s) Annual Revenue ($ millions)11.5 118
10.0 135
9.0 100
5.5 37
3.3 32
Part of the Excel-generated Simple Linear Regression output is provided below:
Regression Statistics
Multiple R 0.940331133
R Square 0.884222639
Adjusted R Square 0.845630185
Standard Error 18.55923942…
A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows:
Cars (1000s) Annual Revenue ($ millions)11.5 118
10.0 135
9.0 100
5.5 37
3.3 32
Part of the Excel-generated Simple Linear Regression output is provided below:
ANOVA
df
SS
MS
F
Significance F
Regression
1
7891.863897
7891.863897
22.91180151
0.017339231
Residual
3
1033.336103
344.4453677
Total
4
8925.2…
A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows:
Cars (1,000s) Annual Revenue ($ millions)11.5 118
10.0 135
9.0 100
5.5 37
3.3 32
Part of the Excel-generated Simple Linear Regression output is provided below:
ANOVA
df
SS
MS
F
Significance F
Regression
1
7891.863897
7891.863897
22.91180151
0.017339231
Residual
3
1033.336103
344.4453677
Total
4
8925.2
Coefficients
Standard Error
t Stat
P-value
Intercept
-19.12490108
23.1658578…
Chapter 14 Solutions
Statistical Techniques in Business and Economics
Ch. 14 - There are many restaurants in northeastern South...Ch. 14 - Prob. 1ECh. 14 - Thompson Photo Works purchased several new, highly...Ch. 14 - A consulting group was hired by the Human...Ch. 14 - Cellulon, a manufacturer of home insulation, wants...Ch. 14 - Refer to Self-Review 141 on the subject of...Ch. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 3SRCh. 14 - Given the following regression output, answer the...
Ch. 14 - The following regression output was obtained from...Ch. 14 - A study by the American Realtors Association...Ch. 14 - The manager of High Point Sofa and Chair, a large...Ch. 14 - Prob. 10ECh. 14 - Prob. 11ECh. 14 - A real estate developer wishes to study the...Ch. 14 - Prob. 13CECh. 14 - Prob. 14CECh. 14 - Prob. 15CECh. 14 - Prob. 16CECh. 14 - The district manager of Jasons, a large discount...Ch. 14 - Suppose that the sales manager of a large...Ch. 14 - The administrator of a new paralegal program at...Ch. 14 - Prob. 20CECh. 14 - Prob. 21CECh. 14 - A regional planner is studying the demographics of...Ch. 14 - Great Plains Distributors, Inc. sells roofing and...Ch. 14 - Prob. 24CECh. 14 - Prob. 25CECh. 14 - Prob. 26CECh. 14 - Prob. 28CECh. 14 - Prob. 29CECh. 14 - The director of special events for Sun City...Ch. 14 - Prob. 31CECh. 14 - Prob. 32CECh. 14 - Prob. 33DACh. 14 - Prob. 34DACh. 14 - Prob. 35DACh. 14 - Prob. 1PCh. 14 - Quick-print firms in a large downtown business...Ch. 14 - The following ANOVA output is given. a. Compute...Ch. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3CCh. 14 - In a scatter diagram, the dependent variable is...Ch. 14 - What level of measurement is required to compute...Ch. 14 - If there is no correlation between two variables,...Ch. 14 - Which of the following values indicates the...Ch. 14 - Under what conditions will the coefficient of...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Prob. 1.9PTCh. 14 - In a multiple regression equation, what is the...Ch. 14 - Prob. 1.11PTCh. 14 - Prob. 1.12PTCh. 14 - For a dummy variable, such as gender, how many...Ch. 14 - What is the term given to a table that shows all...Ch. 14 - If there is a linear relationship between the...Ch. 14 - Given the following regression analysis output: a....Ch. 14 - Given the following regression analysis output. a....
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- A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows: Cars (1000s) Annual Revenue ($ millions)11.5. 11810.0. 1359.0. 1005.5. 373.3. 32 Part of the Excel-generated Simple Linear Regression output is provided below: ANOVA df SS MS F Significance F Regression 1 7891.863897 7891.863897 22.91180151 0.017339231 Residual 3 1033.336103 344.4453677 Total 4 8925.2…arrow_forwardAn insurance company crashed four cars in succession at 5 miles per hour. The cost of repair for each of the crashes was $421,$465,$412,$218. Compute the range of dataarrow_forwardAs a fundraiser, a club was selling tickets to a commuity fair. The group was hoping to attract both children and adults. Tickets were $7.50 for adults and $4.25 for children. Unfotunately, no one remebred to keep track of how many of each ticket were sold. They do know that a total of 166 tickets were sold and that $881 was raised, How many of each kind was old?arrow_forward
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