1. A recent study collected data on pizza sales in various cities around the country. The study wants to examine if pizza sales are higher in bigger cities. The dependent variable is sales (measured in millions of dollars). The independent variable is population (measured in 1,000's). Use the data set pizza to fit the following linear regression:

sales = 0 + 1population.

1. What is the estimate for the intercept? Interpret this value. Does this seem to provide a realistic value for the intercept?
2. What is the estimate for the slope (population effect)? Interpret this value.
3. Using = .05, specify the null and alternative hypothesis to determine if the slope is positive. Report the p-value and the result of the test. Does population have a significant effect on pizza sales? Explain.

H0 :

Ha :

1. Report the R2 and interpret this value. Explain if the regression model provides a good fit for the data.