Question: A supermarket chain staged a promotion for organic vegetables The

A supermarket chain staged a promotion for organic vegetables. The actual sales (Sales) of organic vegetables for the weekend of the promotion were obtained from scanner data at the checkout. Three explanatory variables under consideration for modeling SALES were the size of the store (SqFeet) (in thousands of square feet), the number of customers processed in the store (NumCusts) (in hundreds), and the average size of purchase (AvgSize), which was also obtained from the scanner data. A scatterplot matrix is shown here.
a. Is there any evidence of collinearity in the scatterplots?
b. Does the scatterplot matrix reveal any other problems associated with the data?
c. What other diagnostics of collinearity would you suggest for this problem?

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  • CreatedNovember 21, 2015
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