In this paper I will discuss applications of the basics of statistics and probability theory related to a real world problem.
In this paper I consider how the cost of a pizza franchise affects the formation of the cost to start a selling pizzas business.
All calculations in this research work are provided by using Minitab 16 Statistics Software.
The data was retrieved from:
http://college.cengage.com/mathematics/brase/understandable_statistics/7e/students/datasets/slr/frames/frame.html (Pizza Franchise).
We are given with the data of 36 observations with two variables.
X represents a cost of annual franchise fees (in $1000)
Y represents a start up cost (in $1000)
We believe that cost of franchise affects start up cost, hence, X is a predictor and Y is a response variable.
Follow the steps which are given in instructions to this research.
a) Range and IQR:
Descriptive Statistics: Y; X
Variable Range IQR
Y 780,0 50,0
X Continue reading...