Deb currently has a product line of 10 specialty pizzas. The data above shows overall population data for each line of pizza weight in ounces, cost of a slice to make in dollars, calories per slice, and fat grams per slice.
Deb knows that many of her customers are weight conscious. She'd like to know if there a relationship between fat grams per slice and calories per slice. Is there?
What is the coefficient of correlation? Is it significant at .01? How do you know?
How much of the variation in calories can be explained by the number of fat grams per slice?
Build a predictive model for number of calories using fat grams. If a pizza has 15 grams of fat, how many calories should it have, using your model?
Can you think of any other correlations that might help Deb in her business planning? Are there any variables that seem to be missing?