Explanation Multiple regression model Software procedure: Open the â€œ Starbucks â€� workbook. Select Stat > Regression > Regression > Fit regression model . Double click on column C1 to add â€œTearâ€� column to Reponses box. Double click on column C2, C3 and C4 to add â€œViscosityâ€�, â€œPressureâ€� and â€œPlate gapâ€� to Continuous predictors box. Click G raphs . In the regression: Graphs dialog box, select the regular from residuals for plots pull-down list. Click on Graph s and check the Normal probability plot . Under the Residuals versus the variables, select all the three variables . Click OK in each dialogue box. The Minitab output shows that the multiple regression equation is, Tear = − 18.69 +0 .01214×Viscosity+0 .0844×Pressure+0 .500 × Plate gap . The obtained residual plots are: The above plots show that the assumption of equal variance and linearity might be violated. Testing the significance of overall model Step 1: The null and alternative hypotheses are given below: H 0 : There is no significant relationship between the tear rating and three independent variables . H 1 : There is a significant relationship between the tear rating and three independent variables . Step 2: The level of significance is 5 % . Step 3: The Minitab output obtained above shows that the test statistic for regression is F S T A T = 6.51 and p − value is 0.005. Step 4: Decision based on the p − value : If p − value < 0.05 , reject H 0 . Otherwise do not reject H 0 . Since the p − value is less than 0.05, reject H 0 . Therefore, it can be concluded that there is a significant relationship between the tear rating and three independent variables (viscosity, pressure and plate gap)

Basic Business Statistics, Student Value Edition

14th Edition

ISBN: 9780134685113

Author: Mark L. Berenson, David M. Levine, David F. Stephan, Kathryn Szabat

Publisher: PEARSON

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Basic Business Statistics, Student Value Edition

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