Problem

The market research manager of a catalog clothing supplier has begun an investigation of...

The market research manager of a catalog clothing supplier has begun an investigation of what factors determine the typical order size the supplier receives from customers. From thesales records stored on the company’s computer, the manager obtained average order size data for 180 zip code areas. A part-time intern looked up the latest census information on per capita income, average years of formal education, and median price of an existing house in each of these zip code areas. (The intern couldn’t find house price data for two zip codes, and entered 0 for those areas.) The manager also was curious whether climate had any bearing on order size, and included data on the average daily high temperature in winter and in summer.

The market research manager has asked for your help in analyzing the data. The output provided is only intended as a first try. The manager would like to know whether there was any evidence that the temperature variables mattered much, and also which of the other variables seemed useful. There is some question about whether putting in 0 for the missing house price data was the right thing to do, or whether that might distort the results. Please provide a basic, not too technical explanation of the results in this output and any other analyses you choose to perform.

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Solutions For Problems in Chapter 12