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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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