Princess Foods wants to determine if there is a relationship inthe amount a household spends on
prepared foods to family size and income.
Parthika:
Well, we still have data collected from a previous marketingstudy. Let’s use that. We have an Excel
file. I am sure we can find the spreadsheet. It should have theexact information we need.
Liwei: Yes, this could be interesting. We may find enoughevidence to rethink the meal preparation
kits again.
Bonnie: Great idea. We need to know it the data is a good fitand what the exact relationship is
between the dependent variable and the independent variables. Wecan use this information to help
us design perhaps a new line of prepared frozen foods.
Parthika
Yes, what about the prepackaged salad bowls. We really need tosee this data.
Bonnie:
Yes, let’s get right on this.
Mini-Case Assignment
Please use the attached spreadsheet and Excel to determine theequation that represents the relationship and
explain the goodness of fit.
Based on the data, write a memo and interpret the results. Howmight this data be used?
**Please explain using the regression option on the DataAnalysis pack in Excel. Thank you!
| Dollars spent on Prepared food | Family size | Gross monthly income |
| 495.86 | 4 | 3126 |
| 642.77 | 5 | 3933 |
| 364.81 | 3 | 1925 |
| 619.3 | 5 | 3736 |
| 238.71 | 1 | 1453 |
| 378.94 | 2 | 2538 |
| 302.58 | 1 | 1798 |
| 231.74 | 2 | 1189 |
| 428.67 | 3 | 2247 |
| 286.99 | 3 | 1460 |
| 268.81 | 1 | 1567 |
| 329.81 | 2 | 1622 |
| 627.25 | 5 | 3828 |
| 421.52 | 3 | 2782 |
| 656.38 | 5 | 3978 |
| 400.64 | 3 | 2493 |
| 603.41 | 6 | 3753 |
| 560.69 | 4 | 3778 |
| 623 | 5 | 3609 |
| 416.12 | 2 | 2262 |
| 323.9 | 1 | 1966 |
| 418.78 | 3 | 2736 |
| 506.46 | 4 | 3274 |
| 552.53 | 2 | 3480 |
| 586.46 | 4 | 3741 |
| 637.18 | 8 | 3684 |
| 244.49 | 2 | 1476 |
| 507.19 | 5 | 2835 |
| 512.56 | 5 | 2873 |
| 312.89 | 1 | 1618 |
| 329.05 | 2 | 1565 |
| 243.49 | 2 | 1582 |
| 560.37 | 8 | 3380 |
| 599.9 | 5 | 3922 |
| 657.09 | 5 | 3845 |
| 394.82 | 2 | 2233 |
| 556.42 | 4 | 3098 |
| 596.05 | 8 | 3707 |
| 365.8 | 4 | 2071 |
| 489.08 | 3 | 3166 |
