
Concept explainers
(a)
To explain which analysis would you use to answer the CEO’s question.
(a)

Answer to Problem 25RE
Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The
(b)
To explain what would you tell the CEO.
(b)

Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The scatterplot for the same is shown. And also the two tables for regression analysis and t -test analysis for differences are also shown. Thus, we would tell the CEO that there is a moderate relationship between cottage cheese and ice cream sales as for every million pounds of cottage cheese,
(c)
To explain which analysis would you use to test whether the company sells more cottage cheese or ice cream in a typical year and why.
(c)

Answer to Problem 25RE
Mean difference test is used to test whether the company sells more cottage cheese or ice cream in a typical year.
Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The scatterplot for the same is shown. And also the two tables for regression analysis and t -test analysis for differences are also shown. Thus, in this we want to test whether the company sells more cottage cheese or ice cream in a typical year or not. Therefore, for this testing the mean difference is equal to zero will be used as the regression analysis would not be able to answer this question.
(d)
To explain what would you tell the CEO about this other result.
(d)

Answer to Problem 25RE
The company sells more cottage cheese than ice cream, on average.
Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The scatterplot for the same is shown. And also the two tables for regression analysis and t -test analysis for differences are also shown. Thus, from the mean difference test we have given that,
As we know that if the P-value is less than or equal to the significance level then the null hypothesis is rejected, so we have,
Thus, we conclude that there is evidence that the company sells more cottage cheese than ice cream, on average.
(e)
To explain what assumptions are you making in the analysis you chose in part (a) and in part (c).
(e)

Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The scatterplot for the same is shown. And also the two tables for regression analysis and t -test analysis for differences are also shown. Thus, for part (a), the assumption we will make in analysis is that it is a linear relationship, the residuals have a
And for the part (c), we will make the assumptions that the observations are independent, differences are approximately Normal and the sample is less than
(f)
To find out how much ice cream do you predict Peninsula Creameries will sell.
(f)

Answer to Problem 25RE
Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The scatterplot for the same is shown. And also the two tables for regression analysis and t -test analysis for differences are also shown.As from the regression analysis, the regression equation will come out to be as:
So, it is given next moth cottage cheese sales are
(g)
To give a
(g)

Answer to Problem 25RE
Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The scatterplot for the same is shown. And also the two tables for regression analysis and t -test analysis for differences are also shown. Thus, the
(h)
To explain what your interval means.
(h)

Explanation of Solution
It is given in the question that Peninsula sells both cottage cheese and ice cream. The scatterplot for the same is shown. And also the two tables for regression analysis and t -test analysis for differences are also shown. Thus, the
Thus, from this regression, every million pounds of cottage cheese sold is associated with an increase in ice cream sales of between
Chapter PVII Solutions
Stats: Modeling the World Nasta Edition Grades 9-12
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