Sample Data for Supermarket Profits. Supermarket Number 1 2 3 4 5 6 7 8 9 10 Food Sales Nonfood Sales (tens of thousands (tens of thousands of dollars) of dollars) 305 130 189 175 101 269 421 195 282 203 35 98 83 76 93 77 44 57 31 92 Store Size (thousands of square feet) 35 22 27 16 28 46 56 12 40 32 Profit (thousands of dollars) Y 20 15 17 9 16 27 35 7 22 23 1. Run a multiple regression using the above data. (with profit as the dependent variable). 2. Compare the result of question (1) with another regression equation obtained without the food sales variable. 3. Which of the models do you prefer? Why? 4. Interpret your results for (1) and (2). 5. In writing your paper, you should start by indicating the purpose of the study. Also, discuss the methodology and conclusions. ** You can use EXCEL or any other software. ** You need to include your printout in your submissions. The layout and format of the paper should include the following sections: Title page, Abstract, Introduction, Method, Results, and Discussion. a) Abstract is a very concise summary of the paper. b) The Introduction tells the reader about the topic. Specifically, it should start with the purpose of this paper is to examine.... What the issue is, what is known about it, and the specific focus? Put a business context to it -- write the value added by your work or what businesses can gain from knowledge of the determinants of market profits. c) Empirical Results you should start with a brief discussion of the descriptive statistics for each variable. d) Method you should be able to explain what method you are using for your work. For example, you can start with telling the reader that the ordinary least squares method (OLS) was used to obtain estimated coefficients... (Then write more). You should be able to write the equation from the Excel result. We expect to see you... 1. Using the excel result to generate the equation. 2. Find the standard error of each variable. 3. Find the t-stat of each variable. 4. Find the p-value of each variable. EXAMPLE: = 1.24 + 1.71x1 - 0.83x2 - 2.12x3 (6.79) (1.43) (0.22) (0.85) T-stat [0.18] [1.20] [3.78] [2.48] P-value 0.857 0.247 0.002 0.025 e) The results section should tell what was found from the computed data. Using Chapter 10 and 11 for helping you interpret your result. For instance, you should interpret the Coefficient of Determination ( ), F-test, t-test, p-value and etc. In addition your result should use the hypothesis equation. EXAMPLE: (Note that: remember to mention what is used in your hypothesis testing). f) The Discussion describes what your findings mean in the light of the information presented in the introduction. It is the interpretive segment of the paper and loops back to answer the issues raised in the introduction. Remember to answer questions 2 and 3