Question
I have simulated some data based on my understanding of the North American curry market in relation to price, advertising budget, how far away people
I have simulated some data based on my understanding of the North American curry market in relation to price, advertising budget, how far away people live from the nearest retailer that might stock my curry, and what country people reside in. Of particular interest to me is whether Canadians and Americans feel differently about curry.
- Build a model to predict sales. Include your model results and explain your process.
- I believe that US consumers respond more to changes in Ad_Budget than do Canadians. Conduct the most powerful test you can to see if this is the case. Briefly explain the test and your results (i.e. state the null, alternative, the p-value of the result and what it means.)
- Now conduct a Chow test to determine if Canadians are different from Americans.Briefly explain these results, particularly in light of your test above.
Data set is uploaded and below.
Obs | Sales | Ad_Budget | Price | Distance | Country |
1 | 19103.64 | 362.86 | 11.68 | 6 | US |
2 | 4255.801 | 75.25 | 9.42 | 20 | US |
3 | 20508.34 | 396.63 | 6.68 | 21 | US |
4 | 18261.58 | 356.56 | 9.61 | 18 | US |
5 | 17401.91 | 321.13 | 9.56 | 24 | US |
6 | 20996.89 | 394.26 | 10.85 | 5 | US |
7 | 18581.75 | 386.44 | 11.56 | 12 | CA |
8 | 17574.67 | 329.45 | 9.07 | 12 | US |
9 | 27028.05 | 543.3 | 7.74 | 18 | CA |
10 | 16761.74 | 342.97 | 7.55 | 18 | CA |
11 | 14729.46 | 270.56 | 12.53 | 14 | US |
12 | 16289.81 | 303.27 | 8.4 | 9 | CA |
13 | 10120.87 | 187.13 | 14.49 | 24 | US |
14 | 14054.52 | 287.28 | 12.24 | 18 | CA |
15 | 12582.93 | 268.7 | 9.85 | 20 | CA |
16 | 11296.93 | 201.38 | 9.4 | 12 | US |
17 | 11714.96 | 227.15 | 11.72 | 23 | US |
18 | 20627.93 | 395.57 | 5.08 | 15 | US |
19 | 18672.65 | 360.3 | 10.69 | 10 | US |
20 | 22264.47 | 429.11 | 8.39 | 21 | US |
21 | 15141.12 | 314.66 | 12.15 | 6 | CA |
22 | 13722.25 | 276.63 | 9.24 | 22 | US |
23 | 18894.84 | 385.91 | 10.41 | 11 | CA |
24 | 22344.47 | 429.57 | 9.75 | 13 | US |
25 | 19634.08 | 357.61 | 12.04 | 18 | US |
26 | 8879.141 | 167.23 | 12.63 | 15 | US |
27 | 15088.41 | 295.87 | 8.51 | 18 | US |
28 | 20848.96 | 432.34 | 12.68 | 10 | CA |
29 | 9475.414 | 193 | 9.59 | 12 | CA |
30 | 14812.36 | 260.79 | 9.44 | 16 | US |
31 | 20344.36 | 385.86 | 6.26 | 23 | US |
32 | 8368.586 | 149.45 | 7.55 | 20 | US |
33 | 11233.23 | 241.1 | 9.61 | 20 | CA |
34 | 10914.86 | 208.43 | 9.55 | 6 | CA |
35 | 17711.01 | 343.74 | 8.66 | 14 | US |
36 | 21601.96 | 420.96 | 11.59 | 17 | US |
37 | 18619.38 | 343.74 | 8.75 | 24 | US |
38 | 16200.25 | 290.4 | 4.37 | 14 | US |
39 | 15658.7 | 307.54 | 9.9 | 20 | CA |
40 | 9261.009 | 177.78 | 9.74 | 12 | US |
41 | 24337.11 | 475.05 | 10.07 | 8 | US |
42 | 18434.8 | 358.92 | 10.71 | 25 | US |
43 | 18352.78 | 364.57 | 9.06 | 24 | US |
44 | 29072.28 | 563.95 | 8.43 | 9 | US |
45 | 10007.18 | 182.08 | 9.35 | 20 | US |
46 | 5195.014 | 120.06 | 10.46 | 22 | CA |
47 | 22500.52 | 447.63 | 10.76 | 7 | CA |
48 | 26908.53 | 523.12 | 14.2 | 17 | US |
49 | 11515.28 | 243.85 | 11.76 | 9 | CA |
50 | 18762.21 | 389.5 | 10.54 | 7 | CA |
51 | 4680.459 | 84.65 | 10.06 | 6 | US |
52 | 17187.16 | 322.55 | 8.8 | 22 | US |
53 | 14894.33 | 279.58 | 8.66 | 22 | US |
54 | 16304.28 | 307.78 | 8.19 | 17 | US |
55 | 23212.43 | 456.12 | 9.52 | 11 | US |
56 | 14944.88 | 310.4 | 9.06 | 8 | CA |
57 | 21547.61 | 423.17 | 10.19 | 24 | US |
58 | 9681.604 | 164.55 | 6.36 | 16 | US |
59 | 16561.15 | 334.13 | 13.05 | 10 | CA |
60 | 20894.57 | 409.21 | 8.76 | 12 | US |
61 | 13328.45 | 245.81 | 5.5 | 17 | US |
62 | 14741.21 | 293.13 | 12.89 | 9 | US |
63 | 12122.16 | 225.97 | 11.79 | 22 | US |
64 | 13713.16 | 266.86 | 13.82 | 17 | US |
65 | 13765.65 | 290.89 | 8.12 | 18 | CA |
66 | 16474.52 | 318.32 | 10.67 | 11 | US |
67 | 20590.14 | 407.23 | 10.58 | 18 | US |
68 | 19164.88 | 369.69 | 12.94 | 5 | US |
69 | 6683.109 | 116.23 | 10.08 | 25 | US |
70 | 16400.47 | 312.63 | 12.21 | 15 | US |
71 | 19622.38 | 382.24 | 9.93 | 17 | CA |
72 | 8106.413 | 145.42 | 10.87 | 22 | US |
73 | 23708.71 | 457.34 | 8.61 | 16 | US |
74 | 20500.96 | 432.33 | 9.36 | 15 | CA |
75 | 14497.24 | 273.13 | 10.37 | 16 | US |
76 | 9708.514 | 188.9 | 11.05 | 9 | US |
77 | 15006.76 | 293.4 | 11.34 | 13 | US |
78 | 10681.88 | 198.44 | 9.74 | 19 | US |
79 | 11732.61 | 225.53 | 7.15 | 11 | CA |
80 | 9018.723 | 184.58 | 12.61 | 16 | CA |
81 | 19717.14 | 388.05 | 9.41 | 7 | US |
82 | 9402.169 | 161.98 | 11.77 | 19 | US |
83 | 14566.6 | 292.61 | 7.92 | 19 | US |
84 | 19790.61 | 412.22 | 13.97 | 25 | US |
85 | 12463.1 | 258.16 | 10.43 | 21 | CA |
86 | 19690.1 | 384.83 | 11.94 | 12 | CA |
87 | 13486.26 | 255.38 | 9.28 | 5 | US |
88 | 16749.84 | 317.15 | 13.84 | 5 | US |
89 | 19419.04 | 396.1 | 8.57 | 24 | US |
90 | 27022.3 | 528.49 | 8.66 | 21 | US |
91 | 8882.384 | 192.22 | 13.27 | 25 | CA |
92 | 13668.88 | 254.36 | 10.29 | 17 | US |
93 | 18682.92 | 348.46 | 12.72 | 21 | US |
94 | 14053.93 | 281.03 | 9.64 | 13 | CA |
95 | 18078.76 | 328.94 | 10.81 | 11 | US |
96 | 13269.44 | 275.2 | 15.6 | 20 | US |
97 | 17573.47 | 341.52 | 8.95 | 14 | US |
98 | 19203.92 | 371.19 | 11.61 | 21 | US |
99 | 20194.68 | 365.54 | 13.48 | 8 | US |
100 | 11408.27 | 241.37 | 10.35 | 15 | CA |
101 | 13908.3 | 238.71 | 9.25 | 7 | US |
102 | 16529.05 | 332.39 | 9.92 | 10 | CA |
103 | 10745.13 | 215.93 | 17.05 | 7 | US |
104 | 12209.75 | 253.86 | 14.26 | 14 | US |
105 | 11014.18 | 212.34 | 8.34 | 15 | CA |
106 | 15801.57 | 313.54 | 9.02 | 25 | CA |
107 | 16690.77 | 325.7 | 11.6 | 18 | US |
108 | 13873.63 | 296.61 | 7.03 | 8 | CA |
109 | 15927.43 | 310.72 | 13.84 | 17 | US |
110 | 10146.82 | 195.58 | 7.5 | 8 | US |
111 | 18021.6 | 372.25 | 12.7 | 16 | CA |
112 | 9008.805 | 158.15 | 9.02 | 8 | US |
113 | 10538.53 | 211.88 | 8.78 | 15 | CA |
114 | 18702.03 | 354.77 | 10.28 | 11 | US |
115 | 15416.39 | 323.9 | 10.46 | 6 | CA |
116 | 4959.617 | 103.37 | 11.37 | 14 | US |
117 | 20863.57 | 438.01 | 14.78 | 23 | CA |
118 | 16804.79 | 336.28 | 9.22 | 19 | CA |
119 | 11430.69 | 224.14 | 10.26 | 8 | US |
120 | 16538.42 | 320.86 | 6.22 | 15 | US |
121 | 17149.53 | 342.64 | 10.05 | 25 | US |
122 | 7146.345 | 115.13 | 7.16 | 23 | US |
123 | 15015.04 | 283.97 | 10.6 | 17 | US |
124 | 15565.16 | 284.75 | 8.4 | 22 | US |
125 | 21702.4 | 435.15 | 10.87 | 21 | US |
126 | 19801.48 | 398.74 | 12.53 | 24 | US |
127 | 19018.79 | 387.07 | 11.34 | 16 | CA |
128 | 13240.78 | 278.04 | 11.47 | 5 | US |
129 | 20708.15 | 383.76 | 5.15 | 8 | US |
130 | 15156.16 | 280.24 | 4.18 | 22 | US |
131 | 22011.92 | 418.47 | 7.85 | 22 | CA |
132 | 17545.02 | 328.77 | 10.85 | 6 | US |
133 | 16334.95 | 308.8 | 9.4 | 21 | US |
134 | 24213.34 | 471.41 | 9.81 | 24 | US |
135 | 17073.52 | 349.27 | 10.79 | 9 | CA |
136 | 13939.97 | 262.66 | 8.59 | 22 | US |
137 | 19788.46 | 392.42 | 15.28 | 13 | US |
138 | 27812.92 | 543.85 | 11.06 | 22 | US |
139 | 17852.1 | 349.15 | 9.01 | 25 | US |
140 | 20175.51 | 389.64 | 9.06 | 7 | US |
141 | 22411.95 | 430.18 | 9.31 | 22 | US |
142 | 19085.25 | 345.21 | 10.42 | 18 | US |
143 | 16992.43 | 337 | 9.96 | 23 | US |
144 | 21579.54 | 434.6 | 13.69 | 10 | US |
145 | 6687.625 | 157.54 | 11.65 | 21 | CA |
146 | 11547.72 | 209.22 | 8.41 | 7 | US |
147 | 14993.42 | 274.9 | 12.29 | 5 | US |
148 | 11859.7 | 256.19 | 10.43 | 14 | CA |
149 | 21780.99 | 415.16 | 9.85 | 18 | US |
150 | 14839.1 | 280.11 | 12.34 | 12 | US |
151 | 21120.66 | 432.86 | 10.85 | 11 | CA |
152 | 13967.69 | 259.1 | 11.08 | 11 | US |
153 | 15342.14 | 311.61 | 10.45 | 11 | US |
154 | 11814.33 | 250.67 | 7.14 | 18 | CA |
155 | 19327.59 | 394.53 | 11.88 | 14 | CA |
156 | 9811.389 | 214.4 | 11.62 | 17 | CA |
157 | 23310.01 | 470.78 | 11.26 | 21 | CA |
158 | 13971.19 | 275.77 | 12.06 | 16 | US |
159 | 6470.148 | 111.37 | 12.36 | 16 | US |
160 | 19365.62 | 381.43 | 9.89 | 15 | US |
161 | 22672.09 | 429.7 | 7.43 | 10 | US |
162 | 13213.62 | 248.54 | 9.4 | 5 | US |
163 | 22436.09 | 434.87 | 8.9 | 17 | US |
164 | 6438.395 | 129.57 | 12.29 | 12 | CA |
165 | 9744.778 | 196.56 | 8.87 | 11 | US |
166 | 9928.218 | 195.1 | 11.75 | 19 | US |
167 | 13611.03 | 248.52 | 7.36 | 24 | US |
168 | 16999.91 | 328.65 | 10.78 | 21 | US |
169 | 26069.2 | 494.01 | 4.15 | 24 | US |
170 | 24952.39 | 457.71 | 9.36 | 5 | US |
171 | 11626.31 | 244.33 | 8.46 | 17 | CA |
172 | 19102.21 | 383.26 | 11.72 | 22 | CA |
173 | 22484.83 | 432.19 | 11.48 | 12 | US |
174 | 26740.34 | 516.38 | 12.09 | 22 | US |
175 | 11672.32 | 236.77 | 13.56 | 6 | CA |
176 | 15397.99 | 295.18 | 12.74 | 11 | US |
177 | 8121.026 | 171.97 | 6.71 | 7 | CA |
178 | 15884.65 | 313.59 | 10.54 | 24 | CA |
179 | 15080.59 | 302.94 | 11.5 | 21 | CA |
180 | 19718.52 | 360.52 | 6.98 | 12 | US |
181 | 6919.789 | 127.58 | 10.02 | 23 | US |
182 | 19203.21 | 363.09 | 7.69 | 24 | US |
183 | 18637.75 | 354.57 | 7.3 | 25 | US |
184 | 15087.76 | 288 | 8.57 | 9 | US |
185 | 17380.13 | 325.17 | 13.82 | 12 | US |
186 | 11919.12 | 230.91 | 10.6 | 8 | CA |
187 | 12952.55 | 236.22 | 8.12 | 17 | US |
188 | 5175.387 | 122.5 | 9.2 | 9 | CA |
189 | 3679.158 | 81.63 | 8.52 | 24 | CA |
190 | 14810.78 | 297.9 | 7.65 | 10 | CA |
191 | 16642.09 | 311.84 | 8.03 | 24 | US |
192 | 12304.48 | 239.73 | 11.28 | 19 | US |
193 | 11762.87 | 221.78 | 12.15 | 11 | US |
194 | 26254.52 | 498.67 | 9.54 | 22 | US |
195 | 8312.645 | 177.98 | 10.09 | 5 | CA |
196 | 18078.51 | 338.86 | 9.5 | 16 | US |
197 | 8999.646 | 158.07 | 9.3 | 10 | US |
198 | 13690.9 | 274.35 | 11.53 | 14 | CA |
199 | 13873.02 | 265.84 | 10.22 | 21 | CA |
200 | 15671.53 | 286.59 | 7.99 | 12 | US |
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