A chain of small convenience food stores performs a regression analysis to ­explain variation in sales volume among 16 stores. The variables in the study are as follows:
Sales: Average daily sales volume of a store in thousands of dollars
Size: Floor space in thousands of square feet
Parking: Number of free parking spaces adjacent to the store
Income: Estimated per household income of the zip code area of the store
Output from a regression program (StataQuest) is shown here:
a. Write the regression equation. Indicate the standard errors of the coefficients.
b. Carefully interpret each coefficient.
c. Locate R2 and the residual standard deviation.
d. Is there a severe collinearity problem in this study?

  • CreatedNovember 21, 2015
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