following regression model: S = a + bP + cN. In your regressions, you usually look for a 5%- or-better level of confidence. a. What signs do you expect for a, b, and c? Your regression yields the following results: Adjusted R Square 0.617 Coefficient Standard Independent Variables 5 Error t Stat P-value Intercept 5048 2013 2.508 0.05397 P -66.37 18.72 3.546 0.01647 N 0.0001 0.0056 0.026 0.97996 Interpret what these coefficients mean. C- Does price have a statistically significant effect on sales? d. Does population have a statistically significant effect on sales? e . What portion of the total variation in sales remains unexplained? f. Harley Davidson is considering selling booster seats in a new city, where the population is 176,000, and setting its booster seat price at $65. What level of annual sales would you expect in this new city (rounded to the nearest unit)? 4. Download the "State Crime" Excel sheet; row 2 gives detailed descriptions of each variable, while row 4 gives short versions that should be used in your regressions. Estimate the following multiple regression models (remember that all of your independent variables will have to be in adjacent columns in Excel). Look at each set of results critically and consider how you would interpret the strengths and weaknesses of each model. Save your results from each model for use when completing the end-of-module assessment. Use "Robbery" as your dependent variable in each model. The notation f(X, Y, Z) means "a function of X, Y, Z; i.e. X, Y, and Z are your independent variables. Even though it isn't listed, each model will include an intercept. NOTE: when Excel reports a value like 2.4E-06, this is scientific notation for 2.4 * (10^-6), or 0.0000024. Model A: Robbery = f(%Metro, %Poverty, Rain) Model B: Robbery = f(Population, %SameHouse, MedianAge) Model C: Robbery = f(Population, %SameHouse, MedAgeMale) Model D: Robbery = f(Population, %SameHouse, MedAgeFemale) Model E: Robbery = f(CarTheft, 9%Unemploy, %Bachelors+, Temp) Model F: Robbery = f(CarTheft, "%Unemploy, 9%Bachelors+, Sun) Model G: Robbery = f(CarTheft, %Unemploy, %Bachelors+, Rain) The state of South Iowa currently has a robbery rate of 77.5, a 186.3 CarTheft rate, a "9%Unemploy" rate of 3.7 (be sure to use 3.7 consistent with the underlying data, not 3.7% or 0.037; be careful of the units on all the variables), a "%Bachelors+" rate of 34.1%, and an average annual temperature of 57.8. Recent economic changes have led to the unemployment rate rising to 4.6. This change will likely be associated with the Robbery rate changing from about 77.5 robberies (per 100,000 inhabitants) to about _ robberi The LSUS School of Business considers course information to be proprietary to the professor of the course. Violating this intellectual property protection by scanning, copying website posting, or reproducing and sharing course information is considered an infraction of the MBA Honor Code and LSUS Code of Student Conduct
