Based off the attached data, I need help with the following (2) questions.
A) One of your assistants notes that the market that you are considering entering is located in the
southern part of the nation. She asserts that “everyone knows that southerners eat lots of snack
cakes.” You note that in your data set, Atlanta and Dallas are the only two cities that are in the
“South” census district. Can you test you assistant’s hypothesis that “southerners eat lots of snack
cakes”?
If so, is she correct? If so, how many more snake cakes do Southerners eatthan their
comparable non-southerners? SHOW YOUR WORK .(hint: use a dummy variable)
Do Southerners eat more stack cakes than non-Southerners?
YESorNO(circle one)
If “Yes”, how many more? They eat _________________ more cakes.
B) Ignore the issue about Southerners in (A). Instead, one of your assistants suggests that there is a
significant seasonal effect on the consumption of snack cakes. Specifically, he suggests that
“people each more snack cakes during that holiday season (October through December)”. Can
you test you assistant’s hypothesis?
If so, is she correct? If so, how many more snack cakes do
they eat doing the holiday season? SHOW YOUR WORK.(hint: use a dummy variable)
Do we sell more stack cakes during the holiday season?
YESorNO(circle one)
If “Yes”, how many more? They eat _________________ more cakes.
Sheet1 SUMMARY OUTPUT Regression Statistics Multiple R0.9831808513 R Square0.9666445865 Adjusted R Square0.9635417573 Standard Error802.5565832533 Observations48 ANOVA dfSSMSFSignificance F Regression4802639026.019104200659756.504776311.536515323.856478880229E-31 Residual4327696173.9808957644097.069323155 Total47830335200 CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0% Intercept10149.55915904662734.92023584433.71109878310.00058832714634.06685390915665.05146418414634.06685390915665.0514641841 Price (cents)-36.89403152283.5035328039-10.53052264320-43.9595787982-29.8284842474-43.9595787982-29.8284842474 Com Price (cents)40.9909416063.9595911210.352316783033.00566508248.976218129933.00566508248.9762181299 Income ($000)652.406541126822.376421505829.1559819325.86718405826981E-30607.2801864294697.5328958243607.2801864294697.5328958243 Population (000)0.18376988680.05062103063.63030709770.00074803530.08168284920.28585692440.08168284920.2858569244 Big Suzy Big Suzy's Snack Cakes Demand Data, 2004-1 to 2005-4 Year-QuarterUnit Sales (Q)Price (cents)Com Price (cents)Income ($000)Population (000) Atlanta2004-Q13357063049538.54810 Atlanta2004-Q23477053544538.54825 Atlanta2004-Q33397051539538.54840 Atlanta2004-Q43607054047038.54855 Atlanta2005-Q13527059047039.64870 Atlanta2005-Q23367059044539.64885 Atlanta2005-Q33357061544539.64900 Atlanta2005-Q43567056544539.64915 Boston2004-Q143800615495544920 Boston2004-Q244900565470544932 Boston2004-Q342500615470544944 Boston2004-Q442700640470544956 Boston2005-Q14610056544556.74968 Boston2005-Q24480061547056.74980 Boston2005-Q34850054049556.74992 Boston2005-Q44500061547056.75004 Chicago2004-Q136300615470449450 Chicago2004-Q236400590445449467 Chicago2004-Q338200615520449484 Chicago2004-Q435700590420449501 Chicago2005-Q13840056544546.19518 Chicago2005-Q23590061542046.19535 Chicago2005-Q33700061544546.19552 Chicago2005-Q43960056544546.19569 Dallas2004-Q13479064047042.15620 Dallas2004-Q23649059047042.15634 Dallas2004-Q33629061547042.15648 Dallas2004-Q43789059049542.15662 Dallas2005-Q13859056549542.15676 Dallas2005-Q23529064044544.55690 Dallas2005-Q33799064052044.55704 Dallas2005-Q43599064042044.55718 Denver2004-Q14130051547046.82500 Denver2004-Q23970056549546.82513 Denver2004-Q33670059042046.82526 Denver2004-Q43530061539546.82539 Denver2005-Q13770056542046.82552 Denver2005-Q23940061547049.62565 Denver2005-Q34160056549549.62578 Denver2005-Q44100059047049.62591 Pittsburg2004-Q13200061544541.22725 Pittsburg2004-Q23380059047041.22732 Pittsburg2004-Q33160059042041.22739 Pittsburg2004-Q43340059044541.22746 Pittsburg2005-Q13010064039542.82753 Pittsburg2005-Q23290059042042.82760 Pittsburg2005-Q33330061544542.82767 Pittsburg2005-Q43260065044542.82774