Estimate: Customers =+ Temperature + Weekend +. Interpret the beta estimates. How many customers should the manager expect on a Sunday with a forecasted high temperature of 80 degrees? Interpret the weekend coefficient. Is it significant at the 5% level? How this affect the store’s staffing needs?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A manager at an ice cream store is trying to determine how many customers to expect on any given day. Overall business has been relatively steady over the past several years, but the customer count seems to have ups and downs. He collects data over 30 days and records the number of customers, the high temperature (degrees Fahrenheit) and whether the day fell on a weekend.
- Estimate: Customers =+ Temperature + Weekend +. Interpret the beta estimates.
- How many customers should the manager expect on a Sunday with a forecasted high temperature of 80 degrees?
- Interpret the weekend coefficient. Is it significant at the 5% level? How this affect the store’s staffing needs?
| Customers | Temperature | Weekend |
| 376 | 75 | No |
| 433 | 78 | No |
| 524 | 80 | No |
| 360 | 70 | No |
| 500 | 80 | No |
| 645 | 78 | Yes |
| 667 | 80 | Yes |
| 542 | 85 | No |
| 412 | 70 | No |
| 435 | 72 | No |
| 396 | 69 | No |
| 425 | 70 | No |
| 702 | 90 | Yes |
| 725 | 85 | Yes |
| 509 | 80 | No |
| 450 | 74 | No |
| 378 | 70 | No |
| 433 | 69 | No |
| 467 | 71 | No |
| 679 | 82 | Yes |
| 701 | 80 | Yes |
| 529 | 83 | No |
| 599 | 92 | No |
| 543 | 90 | No |
| 432 | 80 | No |
| 375 | 70 | No |
| 690 | 70 | Yes |
| 734 | 85 | Yes |
| 465 | 74 | No |
| 401 | 68 | No |
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