The manager of a car dealership believes the number of cars sold in a day depends on two factors:

i.The number of hours the dealership is open (H)

ii. The number of salespersons working that day (S)

Using the data attached below, estimate the following log-linear model: Q = a*(H^b)*(S^c). Note: You will need to transform the data before performing the regression.

Q1: What percent of the total variation in daily auto sales is explained by this model?

Q2:If the dealership increases the number of salespersons by 20%, what will be the percentage increase in daily sales?

Day 1 S (salespersons) Q (cars sold) 132 80 H(hours open) 11.4 8.3 12.3 11.3 9.9 10.5 10.5 5 7.6 6.1 4.3 13.3 12.9 4.2 nouv8868 Evo 129 17 18 4.5 6.4 127 46 61 82 9 6 7.9 8.4 13.2 9.6 7.1 98 85 87 27 28 29 9.8 5.2 30 8.3 4