Jim owns a hot dog stand in Los Angeles. He thinks that the quantity of hot dogs

Question

Jim owns a hot dog stand in Los Angeles. He thinks that the quantity of hot dogs that he sells per month depends on only these two things: (1) price per hot dog during the month, (2) number of rainy days during the month. He gathers data from the prior 24 months and uses Excel to run a regression analysis (output table displayed). a) Estimate the quantity of hot dogs that Jim will sell in a month when he charges $2 per hot dog and there are 4 rainy days. b) Will Jim's regression provide reliable estimates of the quantity of hot dogs sold during a month? Carefully explain, including a number from the output table to support your careful explanation. c) Is the coefficient for "price per hot dog (in dollars)" reliable? Carefully explain, including a number from the output table to support your careful explanation. (a) Q = 4813.505- 1609.286P+70.893M Q = 4813.505.1609.286(2)+

Explanation / Answer

a) Quantity of hot dogs that Jim will sell = 4813.505 – 1609.286*2 + 70.893*4 = 1878.505

b) p-value of number of rainy days per month is greater than 0.05, therefore it is not a variable of significant importance. therefore, with this variable, Jim's regression will not provide a reliable estimate of the quantity of hot dogs sold during a month.

c) p-value of variable price per hot dog is less than 0.05, therefore null hypothesis (H0: All of the population means are equal) is rejected. and this variable is of statisfical significance. The coefficient for price per hot dog is reliable.

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.