REVENUE PEOPLE INCOME Restaurant (S millions) (thousands) ($ thousands) COMPTORS 184.6 12.7 82 5 190 9.4 68.8 7 196 6.7 53.1 15 185.8 5.9 48.1 5 S 189 20.5 119.4 16 167.5 16.8 100.8 2 7 197.9 30.2 170.8 12 220 19.8 119.8 10 214.4 26.6 154.4 6 10 171.9 26.2 148.2 11 208.7 11.6 78.9 13 12 145 23.9 139 11 13 149.1 21.7 123.4 14 203.8 20.7 123.9 14 15 191.1 20.7 122.6 2 16 160 20.6 120.4 12 17 164 22.5 132.6 7 18 194.9 17 104.5 15 198.8 25.1 145.4 25 20 202.1 16.5 102.7 55 a) Estimate the model and find the estimated regression equation. b) Examine the overall significance of the model at the 1% level of significance. c) Eliminate the statistically irrelevant factors at the 5% level of significance if any and re- estimate the model with relevant factors.Question 3 EG Burgers is looking to add a new restaurant. The CEO, Emily Grace, decides to use a regression model to help select the location of the new restaurant. She decides to use the annual gross revenue for her current restaurants as the selection criterion, which is the dependent variable. She believes that the determinants of revenue include the following variables: Number of people living within 1km of the restaurant (PEOPLE) Mean income of households within 1km of the restaurant (INCOME) Number of competitors with 1km of the restaurant (COMPTORS) Emily Grace randomly selects twenty of her existing restaurants and has her team gather the values for the variables for these, along with their annual gross revenues (REVENUE). She proposes the following regression model: REVENUE = Do + BIXPEOPLE + 82XINCOME + 6*COMPTORS The following table gives the values of the variable for the 20 restaurants