Correlation and Multicolinearity Excercise

H ADM 2010: Homework X

Spring Semester 2012

Due Monday, May 7, by 3:00 pm

to

Diane Mickelson in 335 Statler Hall.

Name (Print CLEARLY):_____________________________________________

Signature: _________________________________________________________

This cover page must be stapled to the homework you turn in. It is the front page of your homework. Make sure to fill out the information requested above.

GRADING SHEET

MAXIMUM RAW SCORE | MAXIMIUM ADJUSTED SCORE | RAWSCORE | ADJUSTED SCORE |

126 | 120 | | |

Question 1.

Uno Pizzeria, a leading national fast-casual restaurant chain, recently completed a comprehensive study in association with the Hotel School to determine, based on a variety of factors, how much total sales a server will bring in during any one period. Since the analysis was very advanced and the data set involved over 20 predictors, management wanted a smaller, executive summary type analysis: please use the attached data file which shows each servers average check per person as well as three predictors of their ability to sell: 1) MTBI Score (a personality measure); 2) Height; and 3) An index of the length and quality of the individual’s previous work experience. Data appears in Hwk10Q1DatSp12.

A) Plot the dependent variable against each of the three independent variables and briefly describe the relationships.

Yes, based on the 3 scatterplots above, it looks like there is a strong linear relationship between the Average Check/person and all the other predictors. As the average check increases, predictors: MBTI, Height, and experience quality index also seems to increase linearly.

B) Fit a multiple linear regression model to the data using all three predictor variables and determine the estimated regression equation.

(Estimated) Avg. Check= -.25.699 + 0.06 (MBTI) + 0.47 (Height) + .252 (Experience Quality)

ANOVA | |

  | df |

Regression | 3 |

Residual | 56 |

Total | 59 |

| |

  |...