Question
14. An automobile manufacturer has 20 franchised dealers in a large metropolitan area. To study factors influencing the amount of customer traffic, data were collected
14. 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 regression analysis with Urban location as the base case resulted in the following results. (Note that a different data set was used to find these results than for earlier problems where the data were given.)
SUMMARY OUTPUT | ||||||
Regression Statistics | ||||||
Multiple R | 0.690 | |||||
R Square | 0.477 | |||||
Adjusted R Square | 0.337 | |||||
Standard Error | 98.348 | |||||
Observations | 20 | |||||
ANOVA | ||||||
df | SS | MS | F | Significance F | ||
Regression | 4 | 132202.55 | 33050.6 | 3.417 | 0.035534399 | |
Residual | 15 | 145084.25 | 9672.3 | |||
Total | 19 | 277286.80 | ||||
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
Intercept | 86.328 | 141.095 | 0.612 | 0.550 | -214.408 | 387.064 |
Advertising ($100s) | 0.459 | 1.548 | 0.297 | 0.771 | -2.839 | 3.758 |
Size (Acres) | 157.596 | 60.391 | 2.610 | 0.020 | 28.875 | 286.317 |
Rural | -82.161 | 50.924 | -1.613 | 0.127 | -190.704 | 26.382 |
Suburban | -123.358 | 71.600 | -1.723 | 0.105 | -275.970 | 29.254 |
All other things being equal, what do you estimate the difference in traffic will be between a dealership in a Rural location compared to the traffic in an Urban location? If you estimate that the traffic will be higher for a Rural location, indicate a positive number; otherwise use a negative number.
Group of answer choices
82.161
-82.161
-4.167
There is not enough information to answer this question--we would need to re-run the regression with Urban as a variable.
4.167
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