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3.4 Forecasting Exercise San Francisco Bread: Q is the dependent variable; price, com petitor's price, advertising, and income are independent variables. After regressions are completed:
3.4 Forecasting Exercise San Francisco Bread: Q is the dependent variable; price, com petitor's price, advertising, and income are independent variables. After regressions are completed: 1.Write regression equation inform: y = a + b1*x1+ b2*x2 + b3*x3 + b4*x4 + E (Frisco) 2. Identify R2, Adj. R2, F-statistic and standard error ofthe estimate {SEE}. 3. Identify critical Fstatistic and tstatistic for o : 0.05. 4. Create two new columns in Frisco file revenue and adv. % (01c sales) then rerun the regression. Write up your solutions below and click 'Submit' when you are done. The following regression equation was fit to these data : Qi : b0 + blPi + b2PXi + bBAdi + b4Ii + uit . Where : Q is the number of meals served , P is the average price per meal (customer ticket amount, in dollars), PX is the average price charged by competitors (in dollars ), Ad is the local advertising budget for each outlet (in dollars ), Iis the average income per household in each outlet's service area, ni is a residual (or disturbance )term The intercept (306726.05 )has no economic meaning since the value lies far outside the range (1 35) of observed data thus this caJmot he as the expected unit sales of any given San Francisco Bread outlet when all the independent variables take on zero values .The coefcient for each
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