There are many restaurants in northeastern South Carolina. They serve beach vaca
ID: 3250677 • Letter: T
Question
There are many restaurants in northeastern South Carolina. They serve beach vacationers in the summer, golfers in the fall and spring, and snow birds in the winter. Bill and Joyce Tuneall manage several restaurants in the North Jersey area and are considering moving to Myrtle Beach, SC, to open a new restaurant. Before making a final decision they wish to investigate existing restaurants and what variables seem to be related to profitability. They gather sample information where profit (reported in $000) is the dependent variable and the independent variables are:
X1: The numbers of parking spaces near the restaurant.
X2: The number of hours the restaurant is open per week.
X3: The distance from the Pavilion (a landmark in the central area) in Myrtle Beach.
X4: The number of servers employed.
X5: The number of years the current owner has owned the restaurant.
The following is part of the output obtained using statistical software.
Predictor
Coefficient
SE Coefficient
T
Constant
2.50
1.50
1.667
X1
3.00
1.500
2.00
X2
4.00
3.00
1.333
X3
-3.00
0.20
-15.00
X4
0.20
0.05
4.00
X5
1.00
1.50
0.667
Interpret the values of b2 (Coefficient of X2 and b3 (Coefficient of X3 in the multiple regression equation.
Predictor
Coefficient
SE Coefficient
T
Constant
2.50
1.50
1.667
X1
3.00
1.500
2.00
X2
4.00
3.00
1.333
X3
-3.00
0.20
-15.00
X4
0.20
0.05
4.00
X5
1.00
1.50
0.667
Explanation / Answer
B2 value of 4 implies that profit increases by 4000 dollars[4 * 1000] for every unit increases in x2
B3 value of -3 implies that profit decreases by 3000 dollars[-3*1000] for every unit increase in x3
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.