Fran’s Convenience Marts are located throughout a metropolitan area. Fran, the o

Question

Fran’s Convenience Marts are located throughout a metropolitan area. Fran, the owner, would like to expand into other communities. As part of her presentation to the local bank, she would like to better understand the factors that make a particular outlet profitable. She must do all the work herself, so she will not be able to study all her outlets. She selects a random sample of 15 marts and records the average daily sales (Y ), the floor space (area), the number of parking spaces, and the median income of families in each region. The sample information is reported below: M chapter 13 Assignment x C chegg study l Guided Sc x C ezto.mheducation com/hm.tpx c-1. Compute the value of the test statistic. (Round the final answer to 2 decimal places.) c-2. What is your decision regarding Ho? HD. Not all the regression coefficients equal zero Reject Conduct individual hypothesis tests to determine if any of the independent variables can be dropped. Test at a significance level of 0.05. For Income For Store Area For Parking Spaces H1: 8320 H1: A1 0 d. State the decision rule. Round the final answers to 3 decimal places. Negative answer should be indicated by a minus sign.) Reject H f t

Explanation / Answer

c-1

From following results F=37.00

c-2

Reject nullhypothesis

Part-d

At 0.05 level of signifcance we reject Ho is

t<-2.01 or t>2.01

Part-d-1

keep strong area and parking space and delete income

Part-e

Y=1216.141+0.980 Strong Area+11.035 Parking SPace +0 income

R-square=0.903

SUMMARY OUTPUT Regression Statistics Multiple R 0.953852236 R Square 0.909834088 Adjusted R Square 0.885243385 Standard Error 15.11766549 Observations 15 ANOVA df SS MS F Significance F Regression 3 25367.75143 8455.917142 36.99910817 4.85355E-06 Residual 11 2513.981908 228.5438098 Total 14 27881.73333 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 1307.620852 180.2446146 7.254701364 1.63431E-05 910.9051297 1704.336574 Store Area 0.984822231 0.330340689 2.981231992 0.012491968 0.257747276 1.711897186 Parking Spaces 13.17248696 5.18290066 2.541527964 0.027405337 1.764999522 24.5799744 Income ($000) -2.187429952 2.340466465 -0.934612815 0.370051137 -7.338761908 2.963902005

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