Estimates

Sheet1

Using Excel, generate regression estimates for the following model: Annual Amount Spent on Organic Food = α + b1Age + b2AnnualIncome + b3Number of People in Household + b4Gender After you have reviewed the results from the estimation, write a report to your boss that interprets the results that you obtained. Please include the following in your report: 1. The regression output you generated in Excel. 2. Your interpretation of the coefficient of determination (r-squared). 3. Your interpretation of the global test for statistical significance (the F-test). 4. Your interpretation of the coefficient estimates for all the independent variables. 5. Your interpretation of the statistical significance of the coefficient estimates for all the independent variables. 6. The regression equation with estimates substituted into the equation. (Note: Once the estimates are substituted into the regression equation, it should take a form similar to this: y = 10 +2x1 +1x2 +4x3 +0.9x4) 7. An estimate of “Annual Amount Spent on Organic Food” for the average consumer. (Note: You will need to substitute the averages for all the independent variables into the regression equation for x, the intercept for α, and solve for y.) 8. A discussion of whether or not the coefficient estimate on the Age variable in this estimation is different than it was in the simple linear regression model from Module 3 Case. Be sure to explain why it did/did not change. 9. You decide you want to generate an elasticity coefficient, so you log the following variables in Excel: Annual Amount Spent on Organic Food, Annual Income. 10. Using Excel, generate regression estimates for the following model: Log(Annual Amount Spent on Organic Food) = α +b1Age + b2Log(AnnualIncome) + b3Number of People in Household + b4Gender 11. Your interpretation of the coefficient estimate for Log(AnnualIncome). 12. Your interpretation of the coefficient of determination (r-squared) for this new model.