Question
11.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
11.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). Also remember that the data below may be different than the data from the previous question.
Dealer | Advertising ($100s) | Size (Acres) | Location | Traffic |
1 | 1 | 1.3 | Suburban | 293 |
2 | 9 | 1.3 | Rural | 94 |
3 | 11 | 2.6 | Urban | 438 |
4 | 14 | 2.2 | Suburban | 437 |
5 | 22 | 1.8 | Urban | 437 |
6 | 24 | 1.7 | Rural | 299 |
7 | 25 | 2.2 | Rural | 298 |
8 | 29 | 1.6 | Rural | 247 |
9 | 29 | 2.2 | Suburban | 421 |
10 | 30 | 1.6 | Suburban | 392 |
11 | 31 | 2.1 | Urban | 388 |
12 | 39 | 1.6 | Urban | 537 |
13 | 40 | 1.9 | Rural | 371 |
14 | 45 | 1.9 | Urban | 406 |
15 | 49 | 2 | Suburban | 457 |
16 | 52 | 2.1 | Rural | 525 |
17 | 54 | 2.8 | Urban | 722 |
18 | 55 | 1.8 | Urban | 452 |
19 | 60 | 1.9 | Urban | 496 |
20 | 60 | 1.8 | Suburban | 529 |
Use Excel to create a regression model relating customer traffic to advertising, size of the facility and location. For location, use Suburban as the base case. What do you predict customer traffic to be for a Rural location with advertising of $28 hundred and a facility size of 2.7 acres?
Group of answer choices
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540
509
83
442
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