You are a consultant who works for the Diligent Consulting Group. In this essay, you are engaged on a
consulting basis by Loving Organic Foods. In order to get a better idea of what might have motivated
customers’ buying habits you are asked to analyze the factors that impact organic food expenditures. You
performed a simple linear regression analysis in the previous essay (writer id174697). Now, you are adding a
layer of complexity to that analysis and including more independent variables in your model.
Using Excel, generate regression estimates for the following model:
Annual Amount Spent on Organic Food = α + b1Age + b2AnnualIncome
+ b3Number of People in Household + b4Gender
After you have reviewed the results from the estimation, write a report to your boss that interprets the results
that you obtained. Please include the following in your report:
1.The regression output you generated in Excel.
2.Your interpretation of the coefficient of determination (r-squared).
3.Your interpretation of the global test for statistical significance (the F-test).
4.Your interpretation of the coefficient estimates for all the independent variables.
5.Your interpretation of the statistical significance of the coefficient estimates for all the independent
variables.
6.The regression equation with estimates substituted into the equation. (Note: Once the estimates are
substituted into the regression equation, it should take a form similar to this: y = 10 +2×1 +1×2 +4×3 +0.9×4)
7.An estimate of “Annual Amount Spent on Organic Food” for the average consumer. (Note: You will need
to substitute the averages for all the independent variables into the regression equation for x, the intercept for
α, and solve for y.)
8.A discussion of whether or not the coefficient estimate on the Age variable in this estimation is different
than it was in the simple linear regression model from Module 3 Case. Be sure to explain why it did/did not
change.
Provide a brief introduction to/background of the problem, similar to the introduction/background you
provided in the previous essays.
Provide a brief comparison of simple linear regression and multiple linear regression.
Provide a written analysis that addresses each of requirements listed above