Number 2... Please help
1. The file Coordination Test.csv contains information on the number of mistakes participants made on a coordination test and the number of alcoholic beverages they consumed. (a) Run a simple regression with mistakes as the dependent and number of drinks as the independent variable. Report the coefficients. (b) What is the issue with the model's residuals? (c) Choose a transformation of the independent variable (exponent, square root, etc.) that you think accurately captures the relationship between mistakes and drinks. Run a re- gression with this transformation as the independent variable(s). Report the coefficients and compare the standard errors of the residuals of both regressions. 2. The File PizzaSales.csv contains information on the sales and average income of the surround- ing neighborhood of a chain of pizza restaurants. Additionally, there is a dummy variable for whether there is a competing restaurant within half a mile. (a) Using a simple linear regression, estimate the daily sales for a store that has no compe- tition. (b) Estimate the daily sales for a store that faces competition. (c) Calculate the difference between you two estimates and comment on the practical and statistical significance of this gap. (d) Provide a 95% confidence interval for the effect of competition on sales.ZOOM + Income Sales Competitor 219.18 708.97 0 464.24 1559.57 285.72 627.96 361.87 658.57 338.87 898.43 199.52 818.22 426.35 814.61 227.75 480.48 421.56 1575.60 355.44 621.01 419.00 977.31 294.76 1041.48 147.13 372.32 209.50 794.37 o- -ooo -o - - 301.39 997.51 472.73 1642.89 111.62 241.08 167.47 438.01 388.80 1482.92 134.74 464.99 495.13 1072.23 238.63 467.07 299.42 952.33 226.28 679.95 166.52 560.42 o - - 163.22 1489.91 135.14 491.84 270.47 605.95 412.19 972.99 129.77 330.35 305.35 1 147.90 Do - 206.85 688.87 476.70 1179.65 419.81 960.67 281.18 690.26 401.32 890.18 302.56 1155.52 117.35 682.57 367.71 1308.58 164.65 437.74 D - sooo - ooo - - 456.73 1699.49 220.77 700. 18 381.68 1307.54 117.05 394.42 231.38 575.31 294.52 967.85 122.11 145.16 336.39 685.62 306.31 640.56 398.18 969. 18