The Manager of a Fast Food Restaurant Wants to Determine

question 92

Essay

The manager of a fast food restaurant wants to determine how sales in a given week are related to the number of discount vouchers (#) printed in the local newspaper during the week. The number of vouchers and sales ($000s) from 10 randomly selected weeks is given below with the predicted sales.
Calculate the residuals. $$\begin{array} { | c | c | c | } \hline \text { observation } & \text { Sales } & \text { predicted Sales } \\\hline 1 & 12.8 & 13.4147 \\\hline 2 & 15.4 & 14.8000 \\\hline 3 & 13.9 & 13.8765 \\\hline 4 & 11.2 & 12.9529 \\\hline 5 & 18.7 & 20.3412 \\\hline 6 & 17.9 & 16.1853 \\\hline 7 & 16.8 & 15.2618 \\\hline 8 & 15.9 & 14.3382 \\\hline 9 & 11.5 & 12.9529 \\\hline 10 & 13.9 & 13.8765 \\\hline\end{array}$$

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Definitions:

Latitude of Acceptance

The range of ideas that an individual sees as reasonable or worthy of consideration.

Social Psychology

A branch of psychology that deals with social interactions, including their origins and their effects on the individual.

Person Perception

The process by which individuals form judgments and impressions of other people.

Confirmation Biases

A natural tendency to look for, make sense of, value, and keep in mind details that confirm one's established beliefs or speculations.