- A pizza restaurant company is making a decision whether or not to open a new...

- A pizza restaurant company is making a decision whether or not to open a new restaurant at a certain area. The firm collected data on the number of population and average family income in places where the firm has restaurants. (data is in Pizza file) Develop a scatter diagram showing the sales on y axis and population on the x axis Run regression analysis and determine what variables are good predictors for sales at 5% level of significance Interpret the coefficients (only the statistically significance ones) Write the regression equation Is the data fits the model? Do you think that there is a variable that needs to be dropped? Run the regression after dropping the variable Is the model a better fit after dropping the variable? Write the new regression equation

Restaurant Sales(1000) Population (1000) Income(1000)

1 59 3.5 35

2 107 7 43

3 90 9 45

4 117 11 52

5 119 10 57

6 134 18 48

7 153 22 45

8 170 21 55

9 153 20 42

10 205 27 53

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Expert Solution

orchestra answered 1 year ago

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