Question

Suppose you have data from a variety of grocery stores. Your boss is interested in modeling the average amount of money that is wasted every month from throwing away food that has not been purchased and is past its expiration date (i.e. the “Y” variable is the amount of money wasted from over-purchasing produce. We’ll call this variable MoneyWaste, and it is in thousands of dollars.)

Your boss thinks that you should make a model based on the following independent variables:

• location of the store (North, South, East, or West),
• the number of years of experience the store’s purchasing manager has had at that particular store (quantitative variable), and
• if the manager had participated in a mentoring program (yes or no).

The model output is given below:

	Estimate of coefficient	p-value
(intercept)	10.0	0.001
North dummy variable	1.3	0.004
West dummy variable	-2.8	0.00007
South dummy variable	-0.5	0.47
Did Participate in Mentoring Program dummy variable	-2.0	0.00025
Years Experience	-0.2	0.01

Question:

Compute the average amount of monthly money wasted by over-purchasing produce for stores in the East whose manager participated in a mentoring program and has 3 years of experience.

Answer 1