Purchase Solution

Lenny's, a national restaurant chain, conducted a study of the factors affecting demand (sales).

Not what you're looking for?

Ask Custom Question

Lenny's, a national restaurant chain, conducted a study of the factors affecting demand (sales). The following variables were defined and measured for a random sample of 30 of its restaurants:
(NOTE: This question and the 3 that follow it, may require the use of statistical tables.)
---Y = Annual restautant sales ($000)
---X1 = Disposable personal income (per capita) of residents within a 5 mile radius
---X2 = License to sell beer/wine (0=No, 1=Yes)
---X3 = Location (within one-half mile of interstate highway; 0 = No, 1 = Yes)
---X4 = Population (within a 5 mile radius)
---X5 = Number of competing restaurants within a 2 mile radius.

The data were entered into a computerized regression program and the following results were obtained:

MULTIPLE R ----------------------------.889
R-SQUARE ------------------------------.79
STD. ERROR OF EST. --------------.40

ANALYSIS OF VARIANCE

------------------------------DF--------------Sum of Squares--------------Mean Sqr.--------------F-Stat.
Regression --------------5--------------------326.13--------------------------65.226-----------------18.17
Error ----------------------24 --------------------86.17---------------------------3.590
Total ----------------------29 ------------------412.30

Variable--------------Coefficient--------------Std. Error--------------t-value
Constant__________.363____________.196___________1.852
__X-1____________.00275___________.00104_________2.644
__X-2 ____________76.65 ___________93.70 _________.818
__X-3 ____________164.3 ___________235.4_________ .698
__X-4 ____________.00331 __________.00126 ________2.627
__X-5 ____________-46.2 ____________12.1 _________-3.818

Based on the information presented above, which of the coefficients are statistically significantly different from zero at the .05 level of significance?

a. Constant, X-2 and X-3
b. X-1, X-4 and X-5
c. All except X-2 and X-3
d. None are significant

Purchase this Solution
Solution Summary

This solution examines the t-value of a coefficient: if t-value of a coefficient is external to the critical value of t we reject Ho - ie. that particular coefficient if statistically significant. Calculations and answer are provided.

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Regression Model

    16479 Lenny's, a national restaurant chain... Lenny's, a national restaurant chain, conducted a study of the factors affecting demand (sales). The following variables were defined and measured for a random sample of 30 of its restaurants.

  • Interpreting the given regression results

    540586 Analyze and interpret the given results. Chez Henri is a restaurant chain that operates in 40 different cities. It hired an economist to estimate the factors affecting the demand for its sales.

  • microeconomic and macroeconomic factors

    Discuss some of the microeconomic and macroeconomic factors a firm must consider in its own sales and profit forecasting. Macroeconomics can best be described as the study of the large aggregates of the economy or the economy as a whole.

  • International Issues and Operations Management

    According to Porter (1986), configuration of a firm's worldwide activities is concerned with where and in how many places in the world each activity in the value chain is conducted.

  • McDonalds: Environmental Factors Affecting Global and Domestic Marketing Decisions

    If the economy is growing, as a whole or in some specific areas of the economy, there would be a demand for such products or services for which there is no demand in more depressed circumstances (Arndt, 2007).

  • Factors affecting Marketing decision

    54691 Environmental factors affecting Marketing Identify the environmental factors that affect global and domestic marketing decisions. Be sure to address the following: a.

  • Sample Size Required - Food Poisoning

    A survey was conducted three months after the food poisoning occurred with a sample of 319 patrons contacted. Of the 300 contacted, 30 indicated that they would not go back to the restaurant because of the potential for food poisoning.

  • Sales and Operations Planning Transcend Company Boundaries

    While making the plans for sales and operations, company should also integrate the factors that are related to outside country (Gattorna, 2009). External factors also affect the sales and operations of the country.

  • Price Elasticity and Price Discrimination

    You have conducted a market research study and discovered that the price elasticity of demand for local residents is lower (less elastic) than the price elasticity of demand for college students, who are usually in town only while the college is in session

View More Related Solutions