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Simple Linear Regression: Price of steak per pound to total sales of steak in a week

A meat processing company is interested in understanding the relationship between the price of their steak (per pound) and the total sales of steak in a week. The company records the average price charged (in dollars) per pound of steak and the total sales (in thousands of dollars) per week for 15 weeks. Run a simple linear regression to explain the impact of price on weekly sales. Express the model you are estimating and state the null and alternate hypothesis. Given the results of your estimation, what is the expected weekly sales when the company charges $3.75 for a pound of steak?

Assume alpha=0.05 for all questions.

Spss is needed to view the data file that is attached.


Solution Preview

We are modeling a linear relationship between the age of the customers and the number of orders placed in a year. The model can be used to predict the number of orders customers place in a year from their ages.
There are two types of hypothesis testing in a regression. One type of hypothesis testing is used to test the overall significance of the model. The result of this hypothesis testing is in the ANOVA table. Below are the null and alternative hypotheses for this hypothesis test:
Null hypothesis: The independent variable (i.e., the age of the customers) cannot ...

Solution Summary

The price of steak per pound to total sales of steak in a week is examined.