## Related questions with answers

Use the standard error to construct an *approximate* prediction interval for $Y$. Based on the width of
this prediction interval, would you say the predictions are good enough to have practical value?

Solution

VerifiedWe will use the table given for a chain of restaurants that mainly sell noodles. **Sales** are given as the dependent $Y$ variable. We are going to use software with a statistics add-on to regress the dependent variable $Y$ against all $5$ 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 $Y$-range is the data given for the dependent variable $Y$ (**Sales/SqFt**) and the input $X$-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 $95\%$ (level of significance for two-tailed test is $0.05$). A sheet with three tables will appear.

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