Question

In: Statistics and Probability

85 1,810 90 4,825 79 438 82 775 84 1,213 96 8,692 88 2,356 76 266...

85 1,810
90 4,825
79 438
82 775
84 1,213
96 8,692
88 2,356
76 266
93 4,930
97 9,138
89 2,714
83 1,082
85 1,290
90 3,970
82 894
91 2,906
90 4,615
84 1,168
79 462
81 1,018
95 5,950

What is multiple R, R square, & Adjusted R square?

Do regression model results indicate significance, meaning the results can be accepted? Yes or No.

For every 1 increase in Temperature, how much do sales increase?

Solutions

Expert Solution

You didn't mention which column represent temperature and which is sales.

I assume first one is temperature and other one is sale.

I used excel for calculation purpose.

output is as follows:

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.922351
R Square 0.850732
Adjusted R Square 0.842876
Standard Error 1041.057
Observations 21
ANOVA
df SS MS F Significance F
Regression 1 1.17E+08 1.17E+08 108.2876 2.7611E-09
Residual 19 20592210 1083801
Total 20 1.38E+08
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -32511.2 3408.723 -9.53766 1.12E-08 -39645.78693 -25376.7 -39645.8 -25376.7
X Variable 1 408.6026 39.26555 10.40613 2.76E-09 326.4188809 490.7864 326.4189 490.7864

Highlighted column gives multiple R, R square, & Adjusted R square.

Since calculated value of f is greater than significant f.

We conclude that regression is significant. that is we can accept the result.

If we increase temperature by 1 sales will increased by 408.606


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