Question:

Problem 1 (10 marks) File: MALL. XLS A national chain of women's clothing stores with locations in the large shopping malls thinks that it can do a better job of planning more renovations and expansions if it understands what variables impact sales. It plans a small pilot study on stores in 25 different mall locations. The data it collects consist of monthly sales, store size (sq. ft), number of linear feet of window display, number of competitors located in mall, size of the mall (sq. ft),and distance to nearest competitor (ft).

The store planners for the women's clothing chain want to find the best model that they can for understanding what store characteristics impact monthly sales.

Use stepwise regression to find the best model for the data.

Analyze the model you have identified to determine whether it has any problems.

Write a memo reporting your findings to your boss. Identify the strengths and weaknesses of the model you have chosen.

3. Approximationg a Binomial Distribution Assume that we have a binomial distribution with " = 100 and p = 0.1. It is impossible to get 101 successes in such a binomial distribu- tion, but we can compute the probability that x = 101 if we use the Poisson distribution to approximate the binomial distribution, and the result is 4.82 X 10 . How does that result agree with the impossibility of having x = 101 with a binomial distribution?Problem02_03: Binomial Distribution The binomial distribution (Wiklpedia>Bin0mial distribution) is given by f(x)=C:p"(1p)"'x, x =0, 1, 2, , n where p is a real number (0