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An owner of an ice cream shop wants to determine the factors that affect ice cream sales in a day. Over 9 days, he calculates
An owner of an ice cream shop wants to determine the factors that affect ice cream sales in a day. Over 9 days, he calculates the Sales (in $100) of the shop, the high temperature that day (Temp), whether it was a Weekend (1 if it was weekend, 0 if it was a weekday), whether it was Rainy that day (1 if it was rainy, 0 otherwise), and how many Employees simultaneously worked the shop that day. His data is as follows:
Temp | Weekend | Rainy | Employees | Sales |
64 | 1 | 1 | 4 | 196 |
81 | 0 | 0 | 2 | 175 |
71 | 1 | 0 | 2 | 225 |
62 | 0 | 0 | 4 | 174 |
76 | 0 | 0 | 4 | 191 |
91 | 0 | 0 | 3 | 195 |
87 | 1 | 1 | 3 | 199 |
76 | 0 | 0 | 2 | 167 |
62 | 0 | 0 | 3 | 168 |
76 O 167 OO 62 O W 168 He fits the model: Sales = Bo + B1(Temp) + B2(Weekend) + B3(Rainy) + B4(Employees) +&; and estimates the coefficients using linear regression. 1) Find the regression equation. (Round your answers to 4 decimal points) Sales = (Temp) + (Weekend) + (Rainy)+ (Employees) 2) The owner believes that, everything else held constant, the shop has more sales on weekend days. Test his hypothesis at the a = 0.05 significance level 2.a) Give the null hypothesis for the owner's claim: O Ho: Bo > 0 O Ho: Bo = 0 O Ho: BO
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