Chicken Consumption in the United States free essay sample

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. We will write a custom essay sample on Chicken Consumption in the United States or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Begin with a summary of your findings and then step through your process. The regression model is insignificant. Ha: The regression model is significant. The output below shows significance of regression model using five independent variables. Analysis of Variance Source DF SS MS F P Regression 5 7791. 5 1558. 3 870. 14 0. 000 Residual Error 30 53. 7 1. 8 Total 35 7845. 2 Analysis of variance indicates that, the given regression model is significant F (5, 30) = 870. 14, p lt; . 05. iii. Significance of independent variables. Hypothesis to be tested: H01: The coefficient of real disposable income per capita is insignificant. Ha1: The coefficient of real disposable income per capita is significant. H02: The coefficient of real retail price of chicken per lb is insignificant. Ha2: The coefficient of real retail price of chicken per lb is significant. H03: The coefficient of real retail price of pork per lb is insignificant. Ha3: The coefficient of real retail price of pork per lb is significant. H04: The coefficient of real retail price of beef is insignificant. Ha4: The coefficient of real retail price of beef is significant. H05: The coefficient of composite real price of chicken substitutes per lb is insignificant. Ha5: The coefficient of composite real price of chicken substitutes per lb is significant. The output below shows significance of each of the five independent variables: Predictor Coef SE Coef T P VIF Constant 39. 463 1. 987 19. 86 0. 000 Real Disposable Income per Capi 0. 0020441 0. 0001520 13. 44 0. 000 30. 4 Real Retail Price of Chicken -0. 12907 0. 06014 -2. 15 0. 040 29. 0 Real Retail Price of Pork 0. 4456 0. 1675 2. 66 0. 012 1920. 4 Real Retail Price of Beef 0. 635 0. 2022 2. 79 0. 009 5006. 3 Comp real price of Chicken Subs -1. 0093 0. 3584 -2. 82 0. 009 11822. 0 It indicates that, since p value (. 000) is less than level of significance (0. 05), we reject the hypothesis H01. Hence we conclude that, the coefficient of real disposable income per capita is significant. Since p value (. 040) is less than level of significance (0. 05), we reject the hypothesis H02. Hence we conclude that, the coefficient of real retail price of chicken per lb is significant. Since p value (. 012) is less than level of significance (0. 5), we reject the hypothesis H03. Hence we conclude that, the coefficient of real retail price of pork per lb is significant. Since p value (. 009) is less than level of significance (0. 05), we reject the hypothesis H04. Hence we conclude that, the coefficient of real retail price of beef per lb is significant. Since p value (. 009) is less than level of significance (0. 05), we reject the hypothesis H05. Hence we conclude that, the coefficient of composite real price of chicken substitutes per lb is significant.