Question
10.An automobile manufacturer has 20 franchised dealers in a large metropolitan area. To study factors influencing the amount of customer traffic, data were collected on
10.An automobile manufacturer has 20 franchised dealers in a large metropolitan area. To study factors influencing the amount of customer traffic, data were collected on customer traffic per week, the amount of newspaper and TV advertising by each dealer (shown in $100s), the size of their physical facilities (in acres), and the location of the dealership (Urban, Suburban or Rural).
Assume that the following data were collected. Remember that we are interested in explaining traffic using the other variables in the dataset (except for the Dealer number, which is just a label).
Dealer | Advertising ($100s) | Size (Acres) | Location | Traffic |
1 | 1 | 1.7 | Urban | 445 |
2 | 2 | 1.8 | Rural | 192 |
3 | 7 | 2.1 | Suburban | 376 |
4 | 11 | 1.9 | Suburban | 481 |
5 | 11 | 2.2 | Urban | 420 |
6 | 19 | 2.5 | Rural | 536 |
7 | 24 | 1.8 | Urban | 556 |
8 | 27 | 1.7 | Rural | 395 |
9 | 30 | 2.1 | Rural | 475 |
10 | 35 | 1.7 | Suburban | 618 |
11 | 36 | 1.7 | Suburban | 574 |
12 | 41 | 2 | Rural | 428 |
13 | 45 | 1.8 | Rural | 370 |
14 | 49 | 1.8 | Suburban | 667 |
15 | 56 | 2 | Urban | 756 |
16 | 62 | 1.4 | Rural | 564 |
17 | 64 | 2.1 | Urban | 825 |
18 | 69 | 2.1 | Suburban | 699 |
19 | 74 | 1.7 | Suburban | 557 |
20 | 79 | 2 | Urban | 739 |
Use Excel to create a regression model relating customer traffic to advertising and size of the facility. (So for this question, we are ignoring the location type.) What is the estimated regression equation?
Group of answer choices
Estimated traffic=7.52+5.27*Advertising ($100s) + 169.78*Size (Acres)
Estimated traffic=7.52+5.27 + 169.78
Estimated traffic=137.79-42.61*Dealer+15.00*Advertising ($100s) + 150.47*Size (Acres)
Estimated traffic=95.09+4.78 + 137.18
Estimated traffic=95.09+4.78*Advertising ($100s) + 137.18*Size (Acres)
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