Chicken Consumption in the United States
The Department of Agriculture is currently looking at the nation’s consumption of chicken. Data have been gathered dating back to 1970, in hopes of finding variables that are closely correlated with chicken consumption so that the consumption can be predicted. In the spreadsheet you will find 36 observations…one for each year since 1970. The variables are:
Year = Year
Y = per capita consumption of chicken (lbs.)
X1 = Real disposable income per capita ($)
X2 = Real retail price of chicken per lb (cents)
X3 = Real retail price of pork per lb. (cents)
X4 = Real retail price of beef per lb. (cents)
X5 = Composite real price of chicken substitutes per lb., which is a weighted average of the real retail prices per lb of pork and beef, the weights being the relative consumption of beef and pork in total beef and pork consumption.
I. Create a model using the 5-step methodology I used in class. Examine and discuss the coefficients you obtained in your model, and the overall significance of your model. Begin with a summary of your findings and then step through your process. Cut and paste your results from Minitab in your report
Dependent variable:
• Y = per capita consumption of chicken (lbs.)
Independent variables:
• X1 = Real disposable income per capita ($)
• X2 = Real retail price of chicken per lb (cents)
• X3 = Real retail price of pork per lb. (cents)
• X4 = Real retail price of beef per lb. (cents)
• X5 = Composite real price of chicken substitutes per lb.
Step 1)
Check for the overall utility of the model
The regression analysis output is given below.
Regression Analysis: lbs. per Cap versus Real Disposa, Real Retail, ...
The regression equation is lbs. per Capita Consumed = 39.5 + 0.00204 Real Disposable Income per Capi - 0.129 Real Retail Price of Chicken + 0.446 Real Retail Price of Pork + 0.564 Real Retail Price of Beef
Year = Year
Y = per capita consumption of chicken (lbs.)
X1 = Real disposable income per capita ($)
X2 = Real retail price of chicken per lb (cents)
X3 = Real retail price of pork per lb. (cents)
X4 = Real retail price of beef per lb. (cents)
X5 = Composite real price of chicken substitutes per lb., which is a weighted average of the real retail prices per lb of pork and beef, the weights being the relative consumption of beef and pork in total beef and pork consumption.
I. Create a model using the 5-step methodology I used in class. Examine and discuss the coefficients you obtained in your model, and the overall significance of your model. Begin with a summary of your findings and then step through your process. Cut and paste your results from Minitab in your report
Dependent variable:
• Y = per capita consumption of chicken (lbs.)
Independent variables:
• X1 = Real disposable income per capita ($)
• X2 = Real retail price of chicken per lb (cents)
• X3 = Real retail price of pork per lb. (cents)
• X4 = Real retail price of beef per lb. (cents)
• X5 = Composite real price of chicken substitutes per lb.
Step 1)
Check for the overall utility of the model
The regression analysis output is given below.
Regression Analysis: lbs. per Cap versus Real Disposa, Real Retail, ...
The regression equation is lbs. per Capita Consumed = 39.5 + 0.00204 Real Disposable Income per Capi - 0.129 Real Retail Price of Chicken + 0.446 Real Retail Price of Pork + 0.564 Real Retail Price of Beef