The owner of a pizza restaurant chain would like to predict the sales of her recent specialty, a Mediterranean flatbread pizza. She has gathered data on monthly sales of the Mediterranean flatbread pizza at her restaurants. She has also gathered information related to the average price of flatbread pizzas, the monthly advertising expenditures, and the disposable income per household in the areas surrounding the restaurants. Below you will find output from the stepwise regression analysis. The p-value method was used with a cutoff of 0.05.
-(A) Summarize the findings of the stepwise regression method using this cutoff value. (
B) When the cutoff value was increased to 0.10, the output below was the result. The table at top left represents the change when the disposable income variable is added to the model and the table at top right represents the average price variable being added. The regression model with both added variables is shown in the bottom table. Summarize the results for this model. (
C) Which model would you recommend using? Why?

Question

The owner of a pizza restaurant chain would like to predict the sales of her recent specialty, a Mediterranean flatbread pizza. She has gathered data on monthly sales of the Mediterranean flatbread pizza at her restaurants. She has also gathered information related to the average price of flatbread pizzas, the monthly advertising expenditures, and the disposable income per household in the areas surrounding the restaurants. Below you will find output from the stepwise regression analysis. The p-value method was used with a cutoff of 0.05. 
-(A) Summarize the findings of the stepwise regression method using this cutoff value. (
B) When the cutoff value was increased to 0.10, the output below was the result. The table at top left represents the change when the disposable income variable is added to the model and the table at top right represents the average price variable being added. The regression model with both added variables is shown in the bottom table. Summarize the results for this model. (
C) Which model would you recommend using? Why?

Quizplus · Accepted Answer

The Answer of The owner of a pizza restaurant chain would like to predict the sales of her recent specialty, a Mediterranean flatbread pizza. She has gathered data on monthly sales of the Mediterranean flatbread pizza at her restaurants. She has also gathered information related to the average price of flatbread pizzas, the monthly advertising expenditures, and the disposable income per household in the areas surrounding the restaurants. Below you will find output from the stepwise regression analysis. The p-value method was used with a cutoff of 0.05. 
-(A) Summarize the findings of the stepwise regression method using this cutoff value. (
B) When the cutoff value was increased to 0.10, the output below was the result. The table at top left represents the change when the disposable income variable is added to the model and the table at top right represents the average price variable being added. The regression model with both added variables is shown in the bottom table. Summarize the results for this model. (
C) Which model would you recommend using? Why?

The Owner of a Pizza Restaurant Chain Would Like to Predict