BA 303 - BUSINESS STATISTICS Weeks 6 & 7: Learning Unit 1: Homework: Chapter 8, Problem 13
Homework: Chapter 8, Problem 13
Using the Excel file Weddings, apply the Regression tool using the wedding cost as the dependent variable and attendance as the independent variable.
What is the regression model?
Interpret all key regression results, hypothesis tests, and confidence intervals in the output.
The output is:
The regression model is:
y = 1906 + 130*x
The hypothesis being tested is:
H0: β1 = 0
H1: β1 ≠ 0
The p-value is 0.000.
Since the p-value (0.000) is less than the significance level (0.05), we can reject the null hypothesis.
Therefore, we can conclude that the model is significant.
53.8% of the variation in the model is explained.
If a couple is planning a wedding for 175 guests, how much should they budget?
The 95% confidence interval for the slope is between 78.0799 and 182.1626.
With 175 guests, the wedding budget will be ;
Budget = 1906 + 130*175 = $24, 656