Regression Analysis
Regression Analysis
Winter 2024
Download the Excel file in Moodle called Applied Assignment 5 – Regression Data to complete the data analysis for this assignment.
This file contains three worksheets:
Simple Linear Regression: This worksheet contains two columns of data that contain two variables – Amount spent per
person on a restaurant dinner and the customer service rating for restaurant service. Amount spent per person is expressed
in dollars. The scale for Customer Service is: 1) Very poor, 2) Poor, 3) Average, 4) Good, 5) Very good.
Multiple Regression 1: This worksheet contains the two variables from the Simple Linear Regression data file (Amount spent
per person on dinner and customer service) as well as a third column with Income level for each diner.
Multiple Regression 2: This worksheet contains the three variables from the Multiple Regression 1 data file (Amount spent
per person on dinner, customer service, and income level) as well as a fourth column for Age of diner.
Complete the questions below using the Regression procedure in the Data Analysis Toolpak in Excel.
1. Run a regression from Simple Linear Regression data, with Customer Service Rating as the independent variable (X) and Amount
Spent per Person at Dinner as the dependent variable (Y). (12 points)
a) What are the F-ratio, degrees of freedom, and p-value for the regression equation? Is it statistically significant?
b) How much of the variation in amount spent is explained by the customer service rating?
c) What is the y-intercept?
d) How much of a change in amount spent comes from a one-unit change in the customer service rating?
e) What would the predicted spending be for someone who rated customer service a 2? For someone who rated customer
service a 5?
2. Run a multiple regression from Multiple Regression 1 data, with Customer Service Rating as the first independent variable (X1),
Income level as the second independent variable (X2) and Amount Spent per Person at Dinner as the dependent variable (Y). (10
points)
a) What are the F-ratio, degrees of freedom, and p-value for the regression equation? Is it statistically significant?
b) How much of the variation in amount spent is explained by the independent variables?
c) What is the y-intercept?
d) Are both independent variables statistically significant?
e) What would the predicted spending be for the following income levels?
$25,000, $50,000, $75,000, $100,000 and $125,000.
3. Run a multiple regression from Multiple Regression 2 data, with Customer Service Rating as the first independent variable (X1),
Income level as the second independent variable (X2), Age as the third independent variable (X3) and Amount Spent per Person at
Dinner as the dependent variable (Y). (11 points)
a) What are the F-ratio, degrees of freedom, and p-value for the regression equation? Is it statistically significant?
b) How much of the variation in amount spent is explained by the independent variables?
c) What is the y-intercept?
d) Are all three independent variables statistically significant?
e) What would the predicted spending be for the following:
o Someone who is 19 years old and who earns $35,000 each year
o Someone who is 45 years old and who earns $75,000 each year
o Someone who is 65 years old and who earns $150,000 each year.