Question

12: A researcher for MLMO (Malco Lifestyle Merchandise for Oligarchs) is attempting to explain the dependent variable of solid gold toilet Sales (in $1000s) in its 30 nationwide stores using multiple regression analysis. In the model, the researcher includes such independent variables as Price (advertised price per unit in $1000s), Competitors' Advertising Expenditures ($1000s), FloorSpace (in square meters), and whether the store is in the South (1 = south; 0 = elsewhere). For the following multiple regression output, answer the following questions (below). Regression Statistics Multiple R 0.9011 RSquare 0.8121 Adjusted Square 0.7820 Standard Error 108. Observations 30 ANOVA Regression 4 Significance SS MS F 12796023199004 27.00586 9.86E-09 296139.B 11845.59 1575741 Residual Total 95% 1672.74 Intercept Price Comida Borice Coefficients 891.0340 11.1353 67516 0.0992 178.8820 Standard Er 379.55 235 0.0271 121 9.23 1.516-09 -19200065 0.12 0.80 0.4297 0.0130 10933 8.65 - 14.00 16 30.06 317 a: Is the regression model significant at the .05 significance level? Explain your decision with reference to the output b: What is the percentage of variation explained by the independent variables? Identify the best statistic to answer this question, and round your answer to two decimal places (i.e., 12.13%). c: What independent variables are significant at the .05 significance level? d: Identify the dummy variable. Is the dummy variable significant? Explain your decision using the output. If significant, what is the dummy variable's impact on the dependent variable? e: Summarize the results of the multiple regression analysis by writing the fitted multiple regression equation (use two decimal places).

Answer 1

Say became x=0.05 shows that yes regression model is signiflcant F calculated (27.00586) is greater than the critical value of F-statistic at having degree of freedom (4,25) b) using freast autput - the value af R-square = 0.8121 or 81.21% 81.21 percentage of variation explated by independent variables. c) If nariables are significant then p-value <a (a= level of significance =0.05) Here 0 Price South are singnificant (because p-value ca) d) Dummy variable those variable which two autputs se, o ar 1 is the only dummy namable uit can take Oon 1 South Ps signifikant p-value (0.0138)< x 10.05] South is significant so is in south (le, south takes value 1) will increme gold tolled sales by 178.88. Hihed regression equation 891.037 11.14X, + (-6.75)X2 + 0.01(x3) + 178.89 xy Overall by analyzing the autput we can model is a good fit (R-square=8/21) have Here south values imeans the stores عه see Heat