Fran's convenience marts are located all through the metro Erie. Pennsylvania. Fran, owner would like to enlarge into other communities in north western PA. And south-western New York like Jamestowne, Corry, Meadville, and Warren. As part of her presentation to local bank, she would like to better understand factors which make particular outlet profitable. She should do all work herself, so she will not be able to examine all her outlets. She chooses a random sample of 15 marts and records average daily sales (Y) floor space (area) number of parking spaces, and median income of families in that zip code region for each. Sample information is below.
1) Find out the regression equation
2) Determine the value of Rsquare? Comment on value.
3) Carry out a global hypothesis test to find out if any of dependent variables are different from zero.
4) Carry out individual hypothesis tests to find out if any of the independent variables can be dropped.
5) If variables are dropped, recomputed regression equation and R square
|
Sampled mart
|
Daily sales
|
Store area
|
Parking spaces
|
Income
|
|
1
|
1840
|
532
|
6
|
44
|
|
2
|
1746
|
478
|
4
|
51
|
|
3
|
1812
|
530
|
7
|
45
|
|
4
|
1806
|
508
|
7
|
46
|
|
5
|
1792
|
514
|
5
|
44
|
|
6
|
1825
|
556
|
6
|
46
|
|
7
|
1811
|
541
|
4
|
49
|
|
8
|
1803
|
513
|
6
|
52
|
|
9
|
1830
|
532
|
5
|
46
|
|
10
|
1827
|
537
|
5
|
46
|
|
11
|
1764
|
499
|
3
|
48
|
|
12
|
1825
|
510
|
8
|
47
|
|
13
|
1763
|
490
|
4
|
48
|
|
14
|
1846
|
516
|
8
|
45
|
|
15
|
1815
|
482
|
7
|
43
|