The Manager of a Fast Food Restaurant Wants to Determine

question 84

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 Excel regression output. $$\begin{array} { | c | c | } \hline \text { Number of vouchers } & \text { Sales } \\\hline 4 & 12.8 \\\hline 7 & 15.4 \\\hline 5 & 13.9 \\\hline 3 & 11.2 \\\hline 19 & 18.7 \\\hline 10 & 17.9 \\\hline 8 & 16.8 \\\hline 6 & 15.9 \\\hline 3 & 11.5 \\\hline 5 & 13.9 \\\hline\end{array}$$ $\begin{array}{|l|c|c|c|c|c|c|}\hline \text { SUMMARY OUTPUT }\\\hline \text { Regression Statistics } & \\\hline \text { Multiple R } & 0.8524 \\\hline \text { R Square } & 0.7267 \\\hline \text { Adjuted R Square } & 0.6925 \\\hline \text { Standard Error } & 1.4301 \\\hline \text { Observations } & 10.0000 \\\hline\\\hline\text { ANOVA }\\\hline & & & & & \text { Sgnificance } \\& d f & S S & M S & F & F \\\hline \text { Regression } & 1.0000 & 43.4982 & 43.4982 & 21.2682 & 0.0017 \\\hline \text { Residual } & 8.0000 & 16.3618 & 2.0452 & & \\\hline \text { Total } & 9.0000 & 59.8600 & & & \\\hline\\\hline & \text { Coefficients } & \begin{array}{c}\text { Standard } \\\text { Error }\end{array} & \text { t Stat } & \text { P-value } & \text { Lower 95\% } & \begin{array}{c}\text { Upper } \\95 \%\end{array} \\\hline \text { Interoept } & 11.5676 & 0.8341 & 13.8679 & 0.0000 & 9.6441 & 13.4912 \\\hline \text { Number of voudhers } & 0.4618 & 0.1001 & 4.6117 & 0.0017 & 0.2309 & 0.6927 \\\hline\end{array}$ Interpret the coefficient of correlation.

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Definitions:

Legal Limits

Boundaries set by law that determine what is permissible or impermissible in society, often enforced by judicial or law enforcement agencies.

Voting

The act of formally expressing one's choice or opinion in a decision-making process, typically in elections or referendums.

Bourgeoisie

The middle-class segment, particularly those with capitalistic interests and values, in a society.

Limited Government

A governance philosophy where governmental powers are restricted by law or a constitution, typically to protect citizens' freedoms.