9.
Using the Excel file Weddings, apply the Excel Regression tool using the wedding
cost as the dependent variable and attendance as the independent variable.
Step 1: Descriptive Statistics Analysis
The sample size (N) is 25;
The mean of wedding in the sample is $25,848.0000 with the standard
deviation of $13,239.40205;
The mean of attendance is 184 with the standard deviation of 74.610.
The correlation between the Wedding Cost and Attendance is positive and is
statistically significant (Pearson β = 0.733, p-value <0.01). The relationship is
strong, which means the Wedding Cost and Attendance data move compatibly within
the same direction – or - the higher the Wedding Cost is, the more people attend.
Step 2: Coefficient of determination – R2 report
Within a small sample, Adjusted R2 would be preferable
Adjusted R2 = 0.518
=> This indicates the data set well fits in the regression line.
=> Variation explained: 51.8% of the change in Attendance could be explained by
the change in Wedding Cost. And the remaining 48.2% could be explained by other
factors.
Step 3: ANOVA
+ H0: Population slope coefficient (β) is equal to 0 => There is no regression line;
+ H1: At least a population slope coefficient (β) is not equal to 0 => There is a
regression line.
F = 26.753, p < 0.001
=> Reject H0, Accept H1
=> At least a population slope coefficient (β) ≠ 0 => There is a regression line.
Step 4: Coefficient
+ Constant: tc = 0.383, p = 0.706 > 0.05 => Constant is not significant
+ Attendance: tactual attendance = 5.172, p < 0.001 => Attendance is significant
Regression model:
Wedding Cost = 130.121*Attendance (Unstandardized Coefficients)
Wedding Cost = 0.733*Attendance (Standardized Coefficients)
If a couple is planning a wedding for 175 guests, how much should they budget?
In this case, we use the regression model based on the unstandardized Coefficients:
Wedding Cost = 130.121*Attendance = 130.121*175 = $22,771.175
Conclusion: Attendance has a strongly positive impact on the Wedding Cost and this
relationship is statistically supported. Change 1 standard deviation of Attendance
will change 0.733 standard deviation of Wedding Cost.
10. Using the Excel file Weddings, apply the Excel Regression tool using the wedding
cost as the dependent variable and the couple’s income as the independent variable,
only for those weddings paid for by the bride and groom.
Step 1: Descriptive Statistics Analysis
The sample size is 9
The mean of wedding cost is $27611.11 with the standard deviation of
12820.340;
The mean of Couple’s Income is 72666.67 with the standard deviation of
21667.949.
The correlation between the Wedding Cost and Couple’s Income is a positive
and significant (Pearson β = 0.631, p-value < 0.05). The relationship is moderate,
which mean the Wedding Cost and Couple’s Income move in the same direction, the
higher the Wedding Cost is, the higher income the couple has.
Step 2: Coefficient of determination
Within a small sample, Adjusted R2 would be preferable
Adjusted R2 = 0.312
=> This indicates the data set fits in the regression line.
=> Variation explained: 31.2% of the change in Couple’s income could be explained
by the change in Wedding Cost. And the remaining 68.8% could be explained by
other factors.
Step 3: ANOVA
+ H0: Population slope coefficient (β) is equal to 0 => There is no regression line;
+ H1: At least a population slope coefficient (β) is not equal to 0 => There is a
regression line.
F = 4.632, p > 0.05 (0.068)
=> Do not reject H0, not enough evidence to accept H1
=> There is no regression line.
