Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help. this is using R Question 1: John, an assistant in the district sales ofce of a national cosmetics rm, obtained the following data
please help. this is using R
Question 1: John, an assistant in the district sales ofce of a national cosmetics rm, obtained the following data in 14 districts: District D M P 5' District D M P S 1 4.2 4.0 3.0 82.6 8 4.3 4.0 5.0 107.7 2 6.5 6.5 5.0 147.0 9 2.5 2.5 5.0 75.5 3 3.0 3.5 4.0 97.3 10 3.1 3.0 4.0 89.0 4 2.1 2.0 3.0 56.2 11 6.2 5.0 4.5 125.1 5 2.9 3.0 4.0 73.4 12 5.5 5.5 5.0 104.6 6 7.2 7.0 3.0 121.8 13 2.2 2.0 4.0 71.5 7 4.3 5.0 4.5 85.6 14 3.0 2.8 3.0 67.4 where D (in $1000 per month) is the expenditure on displays in beauty salons and department stores. M (in $1000 per month) is the expenditure on local media. P [in percentage) is the prorated share of national media advertising, and S [in $1000 per month) is the amount of sales. J ohn's aim is to be able to obtain a linear model to forecast the amount of sales in a district. a. Clearly state the model with all the necessary assumptions. b. Obtain the scatterplots of the response variable and each of the explanatory variables and comments on each of the plot. c. Interpret the coefcients of the model stated in part (a). 'What are the sign of the each of the coefcient in the model do you expect to have? 'Nhy? d. Report the predicted model and does the sign of the estimated coefcients agree to your answer in part (c)? e. At 5% level of signicance, is the model a signicant model? f. At 5% level of significance, test Ho : [3,- = 0 versus H : 13.,- 9'5 0 for all 1' in the model. 1;. Use variance ination to determine if multicollinearity is a problem. h. Repeat part (g) but use the condition indices method. i. At 5% level of signicance. if you need to drop on explanatory variable from the modelI which one will you drop? Why? j. Without using any software, obtain the estimated standardized modelStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started