What percent of variation are restaurant sales explained

Assignment Help Financial Accounting
Reference no: EM13148208

Chez Henri is a restaurant chain that operates in 40 different cities. It hired an economist to estimate the factors affecting the demand for its sales. The following equation was estimated using cross sectional data from each of its 40 restaurants. Y Annual restaurant sales (in thousands) X1 Disposable per capital income (in thousands) of the residents living within 5 miles of a restaurant X2 Population (in thousands) within a 5-mile radius of a restaurant X3 Number of competing restaurants within a 5-mile radius The following information was obtained from the regression analysis: Multiple R: 0.92 R-Square: 0.85 Std. Error of Est.: 0.40 Analysis of Variance DF Sum Squares Mean Sqr. F-Stat Regression 3 220 73.3 18.2 Residual 36 60 1.7 Variable Coefficient Std. Error T-Value Constant 0.4 0.2 2.0 X1 0.01 0.004 2.5 X2 0.02 0.015 1.3 X3 -20.2 4.50 -4.6 Answer the following questions: a. Give the estimated demand equation for predicting restaurant sales. b. Provide an interpretation for each of the regression coefficients. c. Which of the coefficients are statistically significant and which are not? Explain. d. What percent of variation are restaurant sales explained by this equation?

Reference no: EM13148208

Questions Cloud

Journal entries-stage production : On December 5, the store received $500 from the Jackson Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15.
What is the sub-game perfect outcome for a ship : What is the sub-game perfect outcome for a ship with 100 pirates aboard? Suppose instead that a strict majority were required to pass a split
Amount of contract costs incurred : What is the amount of contract costs incurred during the year ended December 31, 2012?
How many grams of reagent are required : A chemist is commissioned to produce 50,000 liters of 0.550 M aqueous phosphoric acid. The chemist can purchase solid, 98.64% pure, phosphoric acid to dissolve in water. How many grams of this reagent are required?
What percent of variation are restaurant sales explained : Which of the coefficients are statistically significant and which are not? Explain. d. What percent of variation are restaurant sales explained by this equation?
Find ninety five percent confidence interval of true mean : A recent study of 25 students showed that they spent an average of $18.53 for gasoline per week. the standard deviation of the sample was $3.00. find the 95% confidence interval of the true mean.
How will she change her consumption of both goods : has her per-dollar marginal utility of grape sodas (MUsoda/Psoda) greater than her per-dollar marginal utility of chips (MUchips/Pchips). How will she change her consumption of both goods to maximize her utility?
What is jims budget constraint : If the price of Jello is $1 and the price of bobbleheads is $3, what is Jim’s budget constraint? How much Jello and how many bobbleheads will Jim purchase?
Problem related to break-even price : What factors might occur during the season that would alter the volume sold and thus the break-even price Annie might charge?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss the type of market failure involved

Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.

  Evaluate emma''s basis in her partnership interest

How much gain, if any, must Emma identify on the transfer? Must Laine recognize any gain and evaluate Emma's basis in her partnership interest?

  How much did this subscription originally cost

This is the remaining balance of a twelve-month subscription purchased on September 30 in the current year. How much did this subscription originally cost?

  What was the earnings per share

For 2010 Stoneland Corporation reported net income $26,000; net sales $400,000; and average shares outstanding 6,000. There were preferred stock dividends of $2,000. What was the 2010 earnings per share?

  Purpose a partial income statement

Purpose a partial income statement beginning with Income before Income Tax Expense

  Graph this utility maximizing situation

show through some examples that every other way of allocating income provides less utility than does the point identified in partb. Graph this utility maximizing situation.

  Prepare an adjusting entry to record the year end fair value

Prepare an adjusting entry, if necessary, to record the year-end fair values adjusting for the portfolio of short-term investment in available –for-sale securities.

  Determine whether the redemption can qualify for sale

White redeems all of Belinda’s shares. Determine whether the redemption can qualify for sale or exchange treatment under the complete termination redemption rules in each of the following independent circumstances:

  What should she do when she want to lose mpi as client

Consider the conflict between Adams and Schmidt. Assuming that Schmidt believes the inventory adjustment and vacation pay accrual must be made and that she does not want to lose MPI as a client, what should she do?

  How much if any is included in matt''s gross estate

The policy has a maturity value of $2,000,000. Matt dies first and the insurance proceeds are paid to Sandra. How much, if any, is included in Matt's gross estate?

  What was the top marginal personal income tax rate

What was the top marginal personal income tax rate in 1980? What is the top rate now? Are you in favor of or opposed in the lower marginal rates? Why?

  Illustrate which type of buying situation is

the White Sox head groundskeeper, scouted nationwide for dirt before settling on the mix provided by Partac Peat. First time Roger Bossard purchased Partac Peat, it was most likely an example of which type of buying situation?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd