Economics
San Francisco Bread: Q is the dependent variable; price, competitor’s price, advertising, and income are independent variables.
After regressions are completed:
1. Write regression equation in form:
y = a + b1*x1 + b2*x2 + b3*x3 + b4*x4 + ε (Frisco)
2. Identify R2, Adj. R2, F-statistic and standard error of the estimate (SEE).
3. Identify critical F-statistic and t-statistic for α = 0.05.
4. Create two new columns in Frisco file — revenue and adv. % (of sales) then re-run the regression.
>original
,6 .62
0, 9
80
2
,973
6,2 ,954
9
,603
0,241
6.20 5.10 6.42 6.97 5.30 5.96
San Francisco Bread Company
Market
Demand (Q)
Price (P)
Competitor Price (Px)
Advertising (Ad)
Income (I)
1
5
9
6
11
7
6.5
4
20
25
54,
8
2
596,45
3
7.
29
5.01
204,559
51,755
3
599,201
6.66
5.96
206,647
52,955
4
572,258
8.01
5.
30
207,025
54,391
5
558,
14
7.53
6.
16
207,4
22
48,491
6
6
27
6.51
7.56
21
24
51,2
19
7
593,024
6.20
7.
15
2
17
48,685
8
565,004
7.
28
6.97
220,
13
47,219
9
596,254
5.95
5.52
220,215
49,775
10
652,880
6.42
6.27
220,728
54,932
11
596,784
5.94
5.66
2
26
48,092
12
657,468
6.47
7.68
228,620
54,929
13
519,866
6.99
5.10
23
46,057
14
612,941
7.72
5.38
232,777
55,239
15
621,707
6.46
237,300
53,976
16
597,215
7.31
7.43
238,765
49,576
17
617,427
7.36
5.28
241,957
55,454
18
572,320
6.19
6.12
251,317
48,480
19
602,400
7.95
6.38
254,393
53,249
20
575,004
6.34
5.67
255,699
49,696
21
667,581
5.54
7.08
262,270
52,600
22
569,880
7.89
275,588
50,472
23
644,684
6.76
7.22
277,667
53,409
24
605,468
6.39
5.21
277,816
52,660
25
599,213
6.00
279,031
50,464
26
610,735
6.82
279,934
49,525
27
603,830
7.10
287,921
49,489
28
617,803
7.77
6.96
289,358
49,375
29
529,009
8.07
5.76
294,787
48,254
30
573,211
6.91
296,246
46,017