MULTIPLE REGRESSION ACTIVITY 1. Several factors appear to be related to sales, including the number of retail outlets in the region stocking the company's parts, the number of automobiles in the region registered as of April 1, and the total personal income for the first quarter of the year. Five independent variables were finally selected as being the most important (according to the sales manager). Then the data were gathered for a recent year. The total annual sales for that year for each region were also recorded. Note in the following table that for region 1 1,739 retail outlets were stocking the company's automotive parts, there were 9,270,000 registered automobiles in the region as of April 1, and sales for that year were $37,702,000.

EXCEL Software example preferred:

i. To obtain the correlation matrix. Interpret the correlation coefficient of the dependent variable and other independent variables given

ii. Is there an existence of multicollinearity? reason

iii. To develop the equation of the multiple regression model

iv. Discuss the regression coefficients

v. Interpret the R-squared and F-ratio

vi. Compute the estimated annual sales if the number of retail outlets is 2500, number of Automobiles registered is 13.5 Million, personal income $101 Billions, Average Age of Automobiles 6 and there are 8supervisors.

NTmeer of Number Automobiles Personal Average Age Annual Sales of Retail Registered Income of Automobiles Number of ($ millions), Outlets, (millions), ($ billions), (years), Supervisors, Y X X2 X X 37.702 1,739 9.27 85.4 3.5 9.0 24.196 1,221 5.86 60.7 5.0 5.0 32.055 1,846 8.81 68.1 4.4 7.0 3.611 120 3.81 20.2 4.0 5.0 17.625 1,096 10.31 33.8 3.5 7.0 45.919 2,290 11.62 95.1 4.1 13.0 29.600 1,687 8.96 69.3 4.1 15.0 8.114 241 6.28 16.3 5.9 11.0 20.116 649 7.77 34.9 5.5 16.0 12.994 1,427 10.92 15.1 4.1 10.0