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Auto sales ($ thousands), household income ($ thousands) and population (thousands) of 10 metropolitan areas were collected (Auto sales data.xlsx): Using household income and population,

  1. Auto sales ($ thousands), household income ($ thousands) and population (thousands) of 10 metropolitan areas were collected ("Auto sales data.xlsx"):
    1. Using household income and population, fit a multiple regression model to forecast auto sales. Provide the equation of the line fit and interpret the slope parameters
    2. Evaluate the model in part (a)
    3. Modify the model in part (a) to test whether population has a non-linear effect on auto sales (while still using household income as an independent variable). Provide the equation of the line fit. Does population have a non-linear effect? Explain
    4. Using multiple measures, compare the models in parts (a) and (c). Which model fits the data better? Explain

DATA:

Area Auto_sales Household_income Population
1 185792 23409 133.17
2 85643 19215 110.86
3 97101 20374 68.04
4 100249 16107 99.59
5 527817 23423 289.52
6 403916 19426 339.98
7 78283 18742 89.53
8 188756 18553 155.78
9 329531 21953 248.95
10 91944 16358 102.13

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