Question: Here s a regression of monthly revenue of Wal Mart Corp relating

Here’s a regression of monthly revenue of Wal-Mart Corp, relating that revenue to the Total U.S. Retail Sales, the Personal Consumption Index, and the Consumer Price Index.
Dependent variable is: Wal-Mart_Revenue
R squared = 66.7% R squared (adjusted) = 63.8%
s = 2.327 with 39 - 4 = 35 degrees of freedom
a) Write the regression model.
b) Interpret the coefficient of the Consumer Price Index (CPI). Does it surprise you that the sign of this coefficient is negative? Explain.
c) Test the standard null hypothesis for the coefficient of CPI and state your conclusions.

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  • CreatedMay 15, 2015
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