Part 4 - Regression Analysis Gina's Boutiques has 12 locations in the Mid-Atlantic region. Costs and additional data is given for each store for the years 2018 through 2022. The data is described next. IVariable Description Year Fiscal year Month Months: 1 is January, etc Store ID Store Identifier High Month 1 indicates High Season, 0 otherwise Flagship 1 if Flagship store, otherwise 0 Customers No. of unique monthly customers Operating costs Store costs excluding cost of goods sold Using the data in the table a cost regression was estimated: Oper. Costs = Constant + b1 . High Month + b2 . Flagship + 63 . Customers The results are reported in the Orange Box (see Cell Q1) 0. 13. View a scatter plot of Costs on Customers. Are there any concerning observations? Answer yes or no. 014. The High Month and Flagship variables can only take on the values 1 or 0 indicating that these characteristics are either present or absent for a given observation. Variables of this type are often referred to as either indicator or dummy variables. If an observation has a value of 1 for an indicator variable the coefficient for that variable is added to the intercept and treated as a fixed cost. If the value is 0 then the effect upon the fixed cost is zero. What is the impact on monthly fixed costs of a High Month? 015. What is the base estimated monthly fixed cost per store? This ignores the impact of High Month or Flagship. 0. 16. Does it make sense that a Flagship store would have a negative coefficient? Answer yes or no. 017. Given the standard error and T-statistic on the Flagship coefficient, should this variable be included in the cost model? Answer yes or no. 018. Given the reported result of the model estimate, determine a forecast of operating costs for a Flagship store expecting 7,000 customers in October.SUMMARY OUTPUT Regression Statistics Multiple R 0.903 R Square 0.815 Adjusted R Sq 0.806 Standard Erro 23760 Observations 60 ANOVA of MS F Regression 3 1.3966E+11 4.65558+10 82.4635527 Residual 56 3.16158+10 564549297 Total 59 1.7128E+11 Coefficients Standard Error t Stat Intercept 66671.19 13124.12 5.08 High Month 44112.37 8030.69 5.49 Flagship -1939.50 13920.61 -0.14 Customers 22.60 2.62 8.64