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(Use SAS only) Suppose that a chain of stores that sell electronics has conducted a study and collected the data summarized in the table below.

(Use SAS only) Suppose that a chain of stores that sell electronics has conducted a study and collected the data summarized in the table below. The data collected are sales volume in July of last year (y, measured in thousands of dollars), the number of households in the stores area (x, measured in thousands), and the location of the store.

Store

1

2

3

4

5

6

7

8

9

10

Number of households

161

99

135

120

164

221

179

204

214

101

Location

Street

Street

Street

Street

Street

Mall

Mall

Mall

Mall

Mall

Sales Volume

157.27

93.28

136.81

123.79

153.51

241.74

201.54

206.71

229.78

135.22

Assume all assumptions are valid for all models you will be testing. Use = 0.05 for all tests.

Consider first order model with interaction between number of households and Location.

  1. A. Draw a scatter plot and use it to graphically determine if there is interaction between number of households and location.
  2. B. Is interaction between number of households and location significant in the model? Does this agree with your findings in A?
  3. C. Based on A, refit the appropriate model and test it. This includes testing all terms/variables individually.

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