In: Finance
the excel file cereal data provides a variety of nutritional information about 67 cereals and their shelf location. Use regression analysis to find the best model that explains the relationship between calories and the other variables. Investigat the model assumptions and clearly explain your conclusion. Keep in mind the principle of parsimony!
DATA:
Cereal Data | |||||||
Product | Cereal Name | Manufacturer | Calories | Sodium | Fiber | Carbs | Sugars |
1 | 100% Bran | Nabisco | 70 | 130 | 10 | 5 | 6 |
2 | AlI-Bran | Kellogg | 70 | 260 | 9 | 7 | 5 |
3 | All-Bran w/Extra Fiber | Kellogg | 50 | 140 | 14 | 8 | 0 |
4 | Almond Delight | Ralston Purina | 110 | 200 | 1 | 14 | 8 |
5 | Apple Cinn Cheerios | General Mills | 110 | 180 | 1.50 | 10.50 | 10 |
6 | Apple Jacks | Kellogg | 110 | 125 | 1 | 11 | 14 |
7 | Basic 4 | General Mills | 130 | 210 | 2 | 18 | 8 |
8 | Bran Chex | Ralston Purina | 90 | 200 | 4 | 15 | 6 |
9 | Bran Flakes | Post | 90 | 210 | 5 | 13 | 5 |
10 | Cap'n'Crunch | Quaker | 120 | 220 | 0 | 12 | 12 |
11 | Cheerios | General Mills | 110 | 290 | 2 | 17 | 1 |
12 | Cinnamon Toast Crunch | General Mills | 120 | 210 | 0 | 13 | 9 |
13 | Clusters | General Mills | 110 | 140 | 2 | 13 | 7 |
14 | Cocoa Puffs | General Mills | 110 | 180 | 0 | 12 | 13 |
15 | Corn Chex | Ralston Purina | 110 | 280 | 0 | 22 | 3 |
16 | Corn Flakes | Kellogg | 100 | 290 | 1 | 21 | 2 |
17 | Corn Pops | Kellogg | 110 | 90 | 1 | 13 | 12 |
18 | Count Chocula | General Mills | 110 | 180 | 0 | 12 | 13 |
19 | Cracklin' Oat Bran | Kellogg | 110 | 140 | 4 | 10 | 7 |
20 | Cream of Wheat | Nabisco | 100 | 80 | 1 | 21 | 0 |
21 | Crispix | Kellogg | 110 | 220 | 1 | 21 | 3 |
22 | Crispy Wheat & Raisins | General Mills | 100 | 140 | 2 | 11 | 10 |
23 | Double Chex | Ralston Purina | 100 | 190 | 1 | 18 | 5 |
24 | Froot Loops | Kellogg | 110 | 125 | 1 | 11 | 13 |
25 | Frosted Flakes | Kellogg | 110 | 200 | 1 | 14 | 11 |
26 | Frosted Mini-Whests | Kellogg | 100 | 0 | 3 | 14 | 7 |
27 | Fruit & Fibre | Post | 120 | 160 | 5 | 12 | 10 |
28 | Fruitful Bran | Kellogg | 120 | 240 | 5 | 14 | 12 |
29 | Fruity Pebbles | Post | 110 | 135 | 0 | 13 | 12 |
30 | Golden Grahams | General Mills | 110 | 280 | 0 | 15 | 9 |
31 | Grape Nuts Flakes | Post | 100 | 140 | 3 | 15 | 5 |
32 | Grape-Nuts | Post | 110 | 170 | 3 | 17 | 3 |
33 | Great Grains Pecan | Post | 120 | 75 | 3 | 13 | 4 |
34 | Honey Comb | Post | 110 | 180 | 0 | 14 | 11 |
35 | Honey Graham Ohs | Quaker | 120 | 220 | 1 | 12 | 11 |
36 | Honey Nut Cheerios | General Mills | 110 | 250 | 1.50 | 11.50 | 10 |
37 | Just Right Crunchy Nugget | Kellogg | 110 | 170 | 1 | 17 | 6 |
38 | Just Right Fruit &Nut | Kellogg | 140 | 170 | 2 | 20 | 9 |
39 | Kix | General Mills | 110 | 260 | 0 | 21 | 3 |
40 | Life | Quaker | 100 | 150 | 2 | 12 | 6 |
41 | Lucky Charms | General Mills | 110 | 180 | 0 | 12 | 12 |
42 | Mueslix Crispy Blend | Kellogg | 160 | 150 | 3 | 17 | 13 |
43 | Multi-Grain Cheerios | General Mills | 100 | 220 | 2 | 15 | 6 |
44 | Nut & Honey Crunch | Kellogg | 120 | 190 | 0 | 15 | 9 |
45 | Oatmeal Raisin Crisp | General Mills | 130 | 170 | 1.50 | 13.50 | 10 |
46 | Post Nat. Raisin Bran | Post | 120 | 200 | 6 | 11 | 14 |
47 | Product 19 | Kellogg | 100 | 320 | 1 | 20 | 3 |
48 | Puffed Rice | Quaker | 50 | 0 | 0 | 13 | 0 |
49 | Puffed Wheat | Quaker | 50 | 0 | 1 | 10 | 0 |
50 | Quaker Oat Squares | Quaker | 100 | 135 | 2 | 14 | 6 |
51 | Raisin Bran | Kellogg | 120 | 210 | 5 | 14 | 12 |
52 | Raisin Squares | Kellogg | 90 | 0 | 2 | 15 | 6 |
53 | Rice Chex | Ralston Purina | 110 | 240 | 0 | 23 | 2 |
54 | Rice Krispies | Kellogg | 110 | 290 | 0 | 22 | 3 |
55 | Shrdded Wht Spn Size | Nabisco | 90 | 0 | 3 | 20 | 0 |
56 | Shredded Wheat | Nabisco | 80 | 0 | 3 | 16 | 0 |
57 | Shredded Wheat n Bran | Nabisco | 90 | 0 | 4 | 19 | 0 |
58 | Smacks | Kellogg | 110 | 70 | 1 | 9 | 15 |
59 | Special K | Kellogg | 110 | 230 | 1 | 16 | 3 |
60 | Strawberry Fruit Wheels | Nabisco | 90 | 15 | 3 | 15 | 5 |
61 | Total Corn Flakes | General Mills | 110 | 200 | 0 | 21 | 3 |
62 | Total Raisin Bran | General Mills | 140 | 190 | 4 | 15 | 14 |
63 | Total Whole Grain | General Mills | 100 | 200 | 3 | 16 | 3 |
64 | Trix | General Mills | 110 | 140 | 0 | 13 | 12 |
65 | Wheat Chex | Ralston Purina | 100 | 230 | 3 | 17 | 3 |
66 | Wheaties | General Mills | 100 | 200 | 3 | 17 | 3 |
67 | Wheaties Honey Gold | General Mills | 110 | 200 | 1 | 18 | 8 |
Solution :
Regression analysis is done by keeping dependent variable as calories. Sodium, Fiber, Carbs, and Sugar are the independent variable
Regression is performed in the excel and results are as follows
Calorie = 21.89 + 0.024 * Sodium + 0.66 * Fiber + 3.43 * Carbs + 3.94 * Sugars
Conclusion: Significance value is 0.00 which is less than 0.01 so we can say that at 99% confidence level this model is valid.
Adjusted R square value is 0.72, which is good.