(A)Satisfaction(y)=-0.78348+0.557957*Price(x1)
+0.734175*speed(x2)
coefficient of determination R2=0.6827, is proportion
of variation explained by the model in the dependent/response
variable
(B) both the predictor/independent variables are significant as
their p-value is less than typical alpha=0.05
(C) Yes, there is positive correlation of predictor variable
with the response variable.
(D) for x1=3, x2=3, Satisfaction(y)=-0.78348+0.557957*3
+0.734175*3=3.0929
yes, Finger Lakes Investments if they can achieve
these performance levels.
following regression analysis information has been generated
using ms-excel
SUMMARY OUTPUT |
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Regression Statistics |
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Multiple
R |
0.826272 |
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R
Square |
0.682726 |
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Adjusted
R Square |
0.62504 |
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Standard
Error |
0.410845 |
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Observations |
14 |
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ANOVA |
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df |
SS |
MS |
F |
Significance F |
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Regression |
2 |
3.99541 |
1.997705 |
11.83517 |
0.001811 |
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Residual |
11 |
1.856733 |
0.168794 |
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Total |
13 |
5.852143 |
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Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Intercept |
-0.78348 |
0.942279 |
-0.83147 |
0.42339 |
-2.85742 |
1.290466 |
Price(x1) |
0.557957 |
0.23317 |
2.392919 |
0.035677 |
0.044753 |
1.071161 |
speed(x2) |
0.734175 |
0.155738 |
4.714163 |
0.000635 |
0.391398 |
1.076953 |
Satisfaction(y)=-0.78348+0.557957*Price(x1)
+0.734175*speed(x2)