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the marketing manager wants to predict the sales volume for the locality on the basis of # households, number of cars and marketing expense on

the marketing manager wants to predict the sales volume for the locality on the basis of # households, number of cars and marketing expense on the basis of the following data:

Sl.No. Sales Volume #Households number of cars marketing expense
15727 161 180
9328 99 150
13681 135 175
12379 120 165
15351 164 178
24174 221 220
20154 179 205
20671 204 210
22978 214 128
10 13522 101 176
11 22471 231 226
12 19529 206 296
13 24216 248 240
14 11521 107 168
15 19782 205 100


i. Draw three scatter plots of sales volume with each of the three variables and comment on their correlation.
ii. Regress the sales volume on #household, number of cars, and marketing expenses. Calculate R square and interpret the same.
iii. Determine which variable is/are significant variable/s. Is there any insignificant variable? If yes, regress again, by dropping the variable. Will dropping that variable increases the adjusted R square?

 


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i ii Coefficient Standard errors tStat Rvalue Household 129317 4360167 029659 0772306 No of cars 262... blur-text-image

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