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Noodles

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QMM 241 – HW#5 – Multiple Regression
13.21 – Data
It is cross-sectional and the unit of observation is a single Noodles restaurant.
13.22 – Data conditioning
Yes the X and Y data is well-conditioned. The Y variable will be the Sales/SqFt which we will be able to figure out with a formula containing all the X variables and the variable magnitudes are all similar in all categories.
13.23 – Predicted signs Variable | Sign | Reason | Seats-Inside | Positive | The larger the size of the restaurant, the higher the sales will be. | Seats-Patio | Positive | The higher number of seats, the higher the revenue will be. | MedIncome | Positive | The higher the income of customers, the higher the sales will be. | MedAge | Positive | The older the potential customers, the higher the revenue will be. | BachDeg% | Positive | More education would be positively correlated with higher income so there will be higher revenue like Income. |

13.24 – Sample Size
75/5=14.8. The data set meets both Evan’s and Donae’s Rules.
13.25 – Regression
The estimated regression equation is = 429.5114 − 1.8149Seats-Inside + 1.2719Seats-Patio − 2.1021MedIncome − 0.0158MedAge + 8.6604BachDeg%. These signs do not match our a priori reasoning for Seats-Inside, MedIncome, and MedAge. Regression Analysis | | | | | | | | | | | | | | R² | 0.233 | | | | | | Adjusted R² | 0.177 | n | 74 | | | | R | 0.483 | k | 5 | | | | Std. Error | 124.529 | Dep. Var. | Sales/SqFt | | | | | | | | | ANOVA table | | | | | | | Source | SS | df | MS | F | p-value | | Regression | 320,276.8169 | 5 | 64,055.3634 | 4.13 | .0025 | | Residual | 1,054,515.7777 | 68 | 15,507.5850 | | | | Total | 1,374,792.5946 | 73 | | | | | | | | | | | | | | | | | | | Regression output | | | |

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