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6. Run a regression using price as the dependent variable. The objective is to discover the hidden pricing formula used by the retailer. For each

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6. Run a regression using price as the dependent variable. The objective is to discover the hidden pricing formula used by the retailer. For each variable in the dataset, determine whether it should be used as an independent variable and if yes, how it should be incorporated. The nal regression model you choose to use must rst be a conceptually correct model (does not contain inappropriate variables). Conditional on that, the marking of this question is based on the adjusted Rsquare of the regression you achieved. You will get 4 marks if the adjusted Rsquare is above 0.9, 3 marks if it is between 0.8 and 0.9, 2 marks if it is between 0.7 and 0.8, 1 mark if it is between 0.6 and 0.7, and 0 mark otherwise. (4 marks)

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