Instructions

The owner of a restaurant with an outdoor patio notices that sales tend to increase on

hotter days. He runs a regression...

Sales = 142,850 - 3,643.17(Temperature) + 23.3(Temperature)²

1.

What would you expect the shape of the regression line to be based on the

signs of the 31 and 32 coefficients?

2.

3.

Pick a value for Temperature between 81-100 degrees F and solve the

equation. What would we predict restaurant sales to be at that temperature?

Pick a value for Temperature between 65-80 degrees F and solve the

equation. What would we predict restaurant sales to be at that temperature?

4. How might the restaurant owner use this information to help manage his

business?

The manager of the restaurant notices that sales tend to be higher on weekends with

nicer weather (1= weekend, 0 = weekday). He runs a regression...

Sales = 155 +104(Temperature) + 2,780(Weekend) + 302(Temperature x Weekend)

1. Pick a value for Temperature between 81-100 degrees F. What would the

predicted sales be for a weekend (Weekend = 1)?

2. What would the predicted sales be for a weekday (Weekend = 0)?

3. Does nicer weather on the weekends have a significant impact on sales?

4. How might the restaurant owner use this information to help manage his

business?