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Chicken Consumption in the United States Essay

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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…show more content…
Significance of regression model H0: 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 < .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
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