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Regression analysis: linear regression interpretation

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After deciding on the appropriateness of a linear model relating coffee sales and maximum temperature, the managers calculate the equation of the least squares regression line to be Yhat = 2492.09 - 10.48X.

1) For these data, coffee sales values that are greater than the meand of the coffee sales values tend to be paired with temperatures values that are _____the mean of the temperature values.

2) According to the regression equation, for an increase of one degree in temperature, there is a corresponding decrease of how many dollars in coffee sales?

3) From the regression equation, what is the predicted coffee sales value (in dollars) when the temperature is 47.6 degrees Fahrenheit? (round your answer to at least one decimal place.)

4) From the regression equation, what is the predicted coffee sales value (in dollars) when the temperature is 56.6 degrees Fahrenheit? (Round your answer to at least one decimal place.)

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This solution interprets the results of a linear regression analysis.

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Simple Linear Regression Analysis

See attached file.

The Abalone Fancy Fish Company sells exotic fish to high end restaurants throughout the West Coast. The sales manager wants to determine what, if any, relationship exists between the pounds/week of fish sold by 24 sales persons and the length of time (in years) the sales person has been with the company.

Attached is the Minitab regression output. The dependent variable is Sales (in pounds/week) and the independent variable is Experience (in years)

Using the information provided to identify the coefficient of determination and the correlation coefficient, and interpret each of them.

Coefficient of determination = %
*Do not round answer.

Interpretation of the coefficient of determination:
A. This is the proportion of the total variation in the number of years of experience that is explained by the sales.
B. This is the point estimate of the change in sales associated with each additional year of experience.
C. This is a measure of the variability of the observed sales values from their predicted values at particular years of experience.
D. This is the proportion of the total variation in sales that is explained by the number of years of experience.
E. This value has no practical interpretation.

Correlation Coefficient =
Interpretation of the correlation coefficient:
A. This tells us that there is a positive linear relationship between sales and experience.
B. This is the point estimate of the change in sales associated with each additional year of experience.
C. This is a measure of the variability of the observed sales values from their predicted values at particular years of experience.
D. This is the proportion of the total variation in sales that is explained by the number of years of experience.
E. This value has no practical interpretation.

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