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Run a regression of Walmart Sales (y) on CPI, Retail Price Index, and December. Use the equation to predict Walmart's sales in a year when
Run a regression of Walmart Sales (y) on CPI, Retail Price Index, and December.
- Use the equation to predict Walmart's sales in a year when the CPI is 600, the retail price index is 400,000, and it is September.
- Repeat (1) assuming the month is December. How much does the prediction change?
- In managerially relevant terms, interpret the coefficient of December and its confidence interval.
(15 points) Can you improve the model created in number 6?If so, explain how and the fit your new model. Describe the results from your model below. How did it improve? What are the managerially relevant details?
Date | Sales ($B) | CPI | Retail Price Index | December |
11/28/2003 | 14.764 | 552.7 | 301337 | 0 |
12/30/2003 | 23.106 | 552.1 | 357704 | 1 |
1/30/2004 | 12.131 | 554.9 | 281463 | 0 |
2/27/2004 | 13.628 | 557.9 | 282445 | 0 |
3/31/2004 | 16.722 | 561.5 | 319107 | 0 |
4/29/2004 | 13.98 | 563.2 | 315278 | 0 |
5/28/2004 | 14.388 | 566.4 | 328499 | 0 |
6/30/2004 | 18.111 | 568.2 | 321151 | 0 |
7/27/2004 | 13.764 | 567.5 | 328025 | 0 |
8/27/2004 | 14.296 | 567.6 | 326280 | 0 |
9/30/2004 | 17.169 | 568.7 | 313444 | 0 |
10/29/2004 | 13.915 | 571.9 | 319639 | 0 |
11/29/2004 | 15.739 | 572.2 | 324067 | 0 |
12/31/2004 | 26.177 | 570.1 | 386918 | 1 |
1/21/2005 | 13.17 | 571.2 | 293027 | 0 |
2/24/2005 | 15.139 | 574.5 | 294892 | 0 |
3/30/2005 | 18.683 | 579 | 338969 | 0 |
4/29/2005 | 14.829 | 582.9 | 335626 | 0 |
5/25/2005 | 15.697 | 582.4 | 345400 | 0 |
6/28/2005 | 20.23 | 582.6 | 351068 | 0 |
7/28/2005 | 15.26 | 585.2 | 351887 | 0 |
8/26/2005 | 15.709 | 588.2 | 355897 | 0 |
9/30/2005 | 18.618 | 595.4 | 333652 | 0 |
10/31/2005 | 15.397 | 596.7 | 336662 | 0 |
11/28/2005 | 17.384 | 592 | 344441 | 0 |
12/30/2005 | 27.92 | 589.4 | 406510 | 1 |
1/27/2006 | 14.555 | 593.9 | 322222 | 0 |
2/23/2006 | 18.684 | 595.2 | 318184 | 0 |
3/31/2006 | 16.639 | 598.6 | 366989 | 0 |
4/28/2006 | 20.17 | 603.5 | 357334 | 0 |
5/25/2006 | 16.901 | 606.5 | 380085 | 0 |
6/30/2006 | 21.47 | 607.8 | 373279 | 0 |
7/28/2006 | 16.542 | 609.6 | 368611 | 0 |
8/29/2006 | 16.98 | 610.9 | 382600 | 0 |
9/28/2006 | 20.091 | 607.9 | 352686 | 0 |
10/20/2006 | 16.583 | 604.6 | 354740 | 0 |
11/24/2006 | 18.761 | 603.6 | 363468 | 0 |
12/29/2006 | 28.795 | 604.5 | 424946 | 1 |
1/26/2007 | 20.473 | 606.348 | 332797 | 0 |
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