# Question

The manager of Collins Import Autos believes the number of cars sold in a day (Q) depends on two factors: (1) the number of hours the dealership is open (H) and (2) the number of salespersons working that day (S). After collecting data for two months (53 days), the manager estimates the following log-linear model:

Q = aHb Sc

a. Explain how to transform this log-linear model into a linear form that can be estimated using multiple regression analysis.

The computer output for the multiple regression analysis is shown below:

b. How do you interpret coefficients b and c? If the dealership increases the number of salespersons by 20 percent, what will be the percentage increase in daily sales?

c. Test the overall model for statistical significance at the 5 percent significance level.

d. What percent of the total variation in daily auto sales is explained by this equation? What could you suggest to increase this percentage?

e. Test the intercept for statistical significance at the 5 percent level of significance. If H and S both equal 0, are sales expected to be 0? Explain why or why not.

f. Test the estimated coefficient b for statistical significance. If the dealership decreases its hours of operation by 10 percent, what is the expected impact on dailysales?

Q = aHb Sc

a. Explain how to transform this log-linear model into a linear form that can be estimated using multiple regression analysis.

The computer output for the multiple regression analysis is shown below:

b. How do you interpret coefficients b and c? If the dealership increases the number of salespersons by 20 percent, what will be the percentage increase in daily sales?

c. Test the overall model for statistical significance at the 5 percent significance level.

d. What percent of the total variation in daily auto sales is explained by this equation? What could you suggest to increase this percentage?

e. Test the intercept for statistical significance at the 5 percent level of significance. If H and S both equal 0, are sales expected to be 0? Explain why or why not.

f. Test the estimated coefficient b for statistical significance. If the dealership decreases its hours of operation by 10 percent, what is the expected impact on dailysales?

## Answer to relevant Questions

Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. ...In terms of the consumer theory set forth in this chapter, can you explain the meaning of the following statements? a. “I think you get more for your money from Nike than from Reebok.” b. “I wanted to buy a Porsche ...U.S. cigarette makers face enormous punitive damage penalties after losing a series of class-action lawsuits that heaped penalties amounting to several hundred billion dollars on the tobacco industry. In spite of the huge ...Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of unleaded gasoline. They estimated that in mass production the car would cost $60,000 per unit to ...An airline transportation consultant offers the CEO of BlueStar, a struggling new commercial airline company, the following advice concerning the airline’s high operating costs in the current quarter: “You don’t have ...Post your question

0