Statistics project

You have to indicate the purpose of the study and discuss (not listing) data characteristics before answering questions and interpreting the results of the regression analysis.

1. Run a multiple regression using the above data. (with profit as the dependent variable).

2. Compare the result of question (1) with another regression equation obtained without the food

sales variable.

3. Which of the models do you prefer? Why?

4. Interpret your results for (1) and (2).

5. In writing your paper, you should start by indicating the purpose of the study. Also, discuss

the methodology and conclusions.

** You can use EXCEL or any other software. ** You need to include your printout in

your submissions.

The layout and format of the paper should include the following sections:

Title page, Abstract, Introduction, Method, Results, and Discussion.

a) Abstract is a very concise summary of the paper.

b) The Introduction tells the reader about the topic. Specifically, it should start with the

purpose of this paper is to examine…. What the issue is, what is known about it, and the specific

focus? Put a business context to it -- write the value added by your work or what businesses can

gain from the knowledge of the determinants of market profits.

c) Empirical Results you should start with a brief discussion of the descriptive statistics for

each variable.

d) Method you should be able to explain what method you are using for your work. For

example, you can start with telling the reader that the ordinary least squares method (OLS) was

used to obtain estimated coefficients... (Then write more). You should be able to write the

equation from the Excel result. We expect to see you…

1. Using the excel result to generate the equation.

2. Find the standard error of each variable.

3. Find the t-stat of each variable.

4. Find the p-value of each variable.

EXAMPLE:

Ŷ = 1.24 + 1.71x1 - 0.83x2 - 2.12x3

𝐒𝐛𝟏 (6.79) (1.43) (0.22) (0.85)

T-stat [0.18] [1.20] [3.78] [2.48]

P-value 0.857 0.247 0.002 0.025

e) The results section should tell what was found from the computed data. Using Chapter 10

and 11 for helping you interpret your result. For instance, you should interpret the Coefficient of

Determination (R!), F-test, t-test, p-value and etc. In addition, your result should use the

hypothesis equation.

Remember that in the results section there should include hypothesis testing for a t-test about

each slope coefficient and a F-test for the overall regression model.

EXAMPLE:

For the t-test, it is written like this:

H": β# = 0 H$:β# ≠ 0

Note: § You have to decide whether to use one-tail or two-tail test § You need to follow chapter 9 materials and declare your alternative hypothesis in

each case very well

F-test:

H": β# = β! = β% = 0 H$:β# ≠ β! ≠ β% ≠ 0,or all three are ≠ 0

(Note that: remember to mention what α is used in your hypothesis testing).

f) The Discussion describes what your findings mean in the light of the information

presented in the introduction. It is the interpretive segment of the paper and loops back to answer

the issues raised in the introduction. Remember to answer questions 2 and 3.