Question

qn: As the regional manager of pizza franchise business,you are interested in understanding how income in a region affects pizza sales.below is a regression output of pizza sales(in thousands of dollars)regressed on the avarage house hold income of an area (also in thousands of dollars)

     linear fit :-
     * pizza sales ($000)= 14.577381+2.9047619*                  income($000)
   
summary of fit :-
RSquare                                      0.96832
Rsquare adj                                0.96304
Root mean square Error          3.108329
mean of response                    43.625
observations(or sum wgts)     8

analysis of variance:-

source      DF     sum of squares    mean square   F ratio
model        1        1771.9048               1771.90          183.3946
error           6        57.9702                    9.66                prob >F
c.total        7       1829.8750                                          <.0001*

a.what is the avarage pizza sales across all eight regions?
b.what does the p-value of the income variable (income* ($0001)) mean?
c.what is the interpretation of the slope?
d.what does the model predict of pizza sales in region with an avarage households income of $40,000?
e.what can you conclude from/about the estimated intercept?
f.what is the interpretation of the R squared (R^2)?
g.what is the root mean square error?

Answer 1