Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The file grocery22 contains 50 days of data from grocery stores for four products, across five locations as well as a dummy variable that equals
The file grocery22 contains 50 days of data from grocery stores for four products, across five locations as well as a dummy variable that equals 1 if the temperature was above freezing sometime during that day, and zero otherwise. You are interested in a regression of revenues in Dartmouth on a constant and revenues in Truro. You also want to allow both the slope and the intercept to be affected by the temperature dummy. On the basis of the first regression you would run, and using a 20 percent level of significance, 0 Truro revenues have no influence on Darthmouth revenues, and the temperature variable affects both the slope and the intercept. O Darthmouth revenues have an important influence on Truro revenues, but the temperature variable only affects the intercept. O Dartmouth revenues have no influence on Truro revenues, and the temperature variable affects the intercept but not the slope. O Truro revenues have an important influence on Dartmouth revenues, as does the temperature variable on the intercept. O Truro revenues have an influence on Dartmouth revenues but only when the temperature was above freezing
Step 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