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Perform the regression and write the estimated regression equation (round off to 3 or 4 significant digits for clarity). Do the coefficient signs agree with your a priori expectations?
Solution
VerifiedWe will use the table given for a chain of restaurants that mainly sell noodles. Sales are given as the dependent variable. We are going to use software with a statistics add-on to regress the dependent variable against all predictors. Under "Data" tab, we need to select our add-on in top right corner ("DataAnalysis"). Next, we need to select "Regression" and input the data. The input -range is the data given for the dependent variable (Sales/SqFt) and the input -range is the data given for all predictors ("Seats-Inside", "Seats-Patio", "MedIncome", "MedAge" and "BachDeg"). We can check the "Labels" box if we included them. The confidence level is (level of significance for two-tailed test is ). A sheet with three tables will appear.
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