Anna is currently in charge of the Harvard book shops in Cambridge, Boston. She suspects that the demand for books is related to the pace of the academic year and to the weather conditions. Anna wants to build a linear regression model to check if her hypothesis makes sense. This is her proposal:

y=a−300∗Holidays−50∗Temperature

y is the number of books sold in the Harvard book shops in Cambridge on a certain day.

a is a constant term.

Holidays is a binary variable (1 if it is an academic holiday in Cambridge, 0 if it is not an academic holiday).

Temperature is a continuous variable, represents the temperature in Cambridge in degrees Celsius.

Which of the following statements is/are true?

Select all correct answers

A) According to Anna’s model, if the temperature is equal to -6 degrees Celsius during a holiday, she will sell “a” books.

B) In Anna’s model, the variable “Temperature” is the intercept.

C) In Anna’s model, “a” is the trend.

D) If the R^2 of this linear regression is 60%, it means that there is a 40% variation in the demand that the model is not explaining.

E) Anna considers that nice weather (higher temperatures) will result in a decrease of book sales.

F) None of the above