Test the statistical significance of the independent variables and the regression equation, indicating how it will impact your decision to open the pizza shop.

Eco 550 assignment 1 strayer university

F-test is a statistical test that measures the statistical significance and reliability of regression equations for a set of variables. It can be used in connection with opening a pizzeria. F-tests are used to compare a model with only an intercept (null), and assess the accuracy of the model in explaining variation in the outcome variables. A high F statistic (greater that 1) is associated with statistically significant p-values (p).

In this instance, if we have determined that opening a pizza shop is dependent on multiple independent variables such as location, total population density, disposable income levels or customer preferences – it would be beneficial to run an F-test on our full linear regression equation so as to determine whether these factors are statistically significant in influencing our decision making process around the feasibility of opening up shop. Statistics can be used to help us make business decisions. They also give insight into the influence of various factors on predicting outcome. Knowing how influential certain predictors can have on business performance allows us to make informed investment decisions and determine potential strategies.

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