Question: An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch. Data is provided
An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch. Data is provided below:
| Sales (units) | Price ($) | Advertising ($) | Holiday |
| 500 | 100 | 50 | Yes |
| 480 | 120 | 40 | Yes |
| 485 | 110 | 45 | No |
| 510 | 103 | 55 | Yes |
| 490 | 108 | 40 | No |
| 488 | 109 | 30 | No |
| 496 | 106 | 45 | Yes |
A) Define the dummy variable(s) for the regression model.
B) What is the correlation between the Holiday categorical variable and sales?
Please identify the dummy variables and note the correlation between the Holiday categorical variable and sales.
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