Question: 4. Run a linear regression analysis to examine what are the important factors that determine the revenue. More specifically, consider the following equation: [Revenue] =

4. Run a linear regression analysis to examine what are the important factors that determine the revenue. More specifically, consider the following equation:

[Revenue] = 0

+ 1 * [status]

+ 2 * [number of visits]

+ 3 * [Gender]

paste the Excel output below. (See lecture 11 materials for regression.)

Based on the regression, please answer question 4.1 and 4.2 . (Please highlight your choice.)

4.1. Among the independent variables, what is(are) the variable(s) whose impact(s) on the dependent variable(=revenue) is significantly different from zero (with = .05)? [16 points]

a) status

b) visit

c) visit and status

d) visit, status, and gender

4.2. Given the estimated regression equation, what is the predicted revenue ($) from an AFC member with the following profile: [16 points]

- [status]: retired (=1)

- [number of visits]: 10 times

- [Gender]: Female (=1)

a) 716.0

b) 448.6

c) 482.6

d) 617.6

[Hint for 4.1: conduct the regression and read the 'P-value' for each coefficient. If P-value < , thevariablehassignificant impact; if P-value > , thevariabledoes not have significant impact.]

DATA:

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id weight classes circuit station pool visits daypart doctor wom advert speaker location article other fitness social enjoy medical recom event age gender educat income status revenue
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9 1 0 0 0 0 12 2 0 1 0 0 0 0 0 5 3 4 4 10 3 80 0 4 1 1170
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11 0 0 1 0 1 1 1 0 0 0 0 0 1 5 3 3 4 10 1 88 1 2 2 1 1150
12 0 1 0 0 1 20 1 0 0 0 0 0 1 0 5 1 3 3 10 3 76 3 4 1 1095
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