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Frank's Convenience Marts (FCM for short) are located throughout metropolitan Chicago. Suzanne, the business development manager, plans to open a new store in the Jackson

Frank's Convenience Marts (FCM for short) are located throughout metropolitan Chicago. Suzanne, the business development manager, plans to open a new store in the Jackson Park neighbourhood in south Chicago. She has found a potential location. To help with the financial analysis, she wants to forecast the daily sales based on data she draws from current stores. Specifically, she selected a random sample of 15 existing stores, and her assistant Nick helped her collect average daily sales, the floor space (area, in square feet) and the median income of families in that ZIP code region for each store. This data is under the worksheetBasic Datain the fileQ4_FMC.xlsx.

Basic Data:

Sampled Mart Daily Sales Store Area Area Income ($ thousand)
1 1840 532 44
2 1746 478 51
3 1812 530 45
4 1806 508 46
5 1792 514 44
6 1825 556 46
7 1811 541 49
8 1803 513 52
9 1830 532 46
10 1827 537 46
11 1764 499 48
12 1825 510 47
13 1763 490 48
14 1846 516 45
15 1815 482 43

Conduct a multiple linear regression using Daily Sales as the dependent variable and Store Area and Area Income as the independent variables. Write out the regression equation based on this model, and attach the regression output as a screenshot picture. Explain the meaning of each of the coefficients. Should all independent variables be included in the model, and why? Comment on the overall quality of this regression model.

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