The Drag Net Fishing Company (DNF) has hired you as a consultant to analyze the demand by local restaurants for fresh fish. The available data set includes monthly observations collected over the past five years on the number of hundreds of pounds of fish purchased by local restaurants per month (Q), the price per pound of fish (P), the average cost of a meal at a local restaurant (M), a seasonal variable (S) that is equal to one during the tourist season and zero otherwise, and average household income (in $1,000) in the area. The results of a regression analysis (with standard errors in parenthesis) are given below.
(i) Evaluate the statistical significance of the equation as a whole and of each of its coefficients.
(ii) The average values of independent variables in the data set that was used to estimate the equation are P = $8, M = $14, and I = $40,000. Calculate a point estimate of the restaurant demand for fish and a 95% interval estimate when it is tourist season. Also, calculate a point estimate of the restaurant demand for fish and a 95% interval estimate when it is not tourist season.

Question

The Drag Net Fishing Company (DNF) has hired you as a consultant to analyze the demand by local restaurants for fresh fish. The available data set includes monthly observations collected over the past five years on the number of hundreds of pounds of fish purchased by local restaurants per month (Q), the price per pound of fish (P), the average cost of a meal at a local restaurant (M), a seasonal variable (S) that is equal to one during the tourist season and zero otherwise, and average household income (in $1,000) in the area. The results of a regression analysis (with standard errors in parenthesis) are given below.
  (i) Evaluate the statistical significance of the equation as a whole and of each of its coefficients.
(ii) The average values of independent variables in the data set that was used to estimate the equation are P = $8, M = $14, and I = $40,000. Calculate a point estimate of the restaurant demand for fish and a 95% interval estimate when it is tourist season. Also, calculate a point estimate of the restaurant demand for fish and a 95% interval estimate when it is not tourist season.

Quizplus · Accepted Answer

The Answer of The Drag Net Fishing Company (DNF) has hired you as a consultant to analyze the demand by local restaurants for fresh fish. The available data set includes monthly observations collected over the past five years on the number of hundreds of pounds of fish purchased by local restaurants per month (Q), the price per pound of fish (P), the average cost of a meal at a local restaurant (M), a seasonal variable (S) that is equal to one during the tourist season and zero otherwise, and average household income (in $1,000) in the area. The results of a regression analysis (with standard errors in parenthesis) are given below.
  (i) Evaluate the statistical significance of the equation as a whole and of each of its coefficients.
(ii) The average values of independent variables in the data set that was used to estimate the equation are P = $8, M = $14, and I = $40,000. Calculate a point estimate of the restaurant demand for fish and a 95% interval estimate when it is tourist season. Also, calculate a point estimate of the restaurant demand for fish and a 95% interval estimate when it is not tourist season.

The Drag Net Fishing Company (DNF) Has Hired You as a Consultant