Goodbuy's management is interested in the variation in the Sales for each supermarket for the financial...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Goodbuy's management is interested in the variation in the Sales for each supermarket for the financial year (Sales $m). Of all the potential factors, the following variables have been chosen as the factors most likely to influence the sales for each supermarket. Sales Sm: Age (Yrs): Adv.$'000: Car Spaces: HomeDel: Below is the computer output showing the result of a regression analysis between sales and Age of Store, Advertising, Car Spaces and Home Delivery as the independent variables (Note: Some output has been omitted). SUMMARY OUTPUT Regression Statistics ANOVA Sales for each supermarket for the financial year ($ million) The number of full years of operation of the store Advertising and promotional expenses for the financial year (in thousand dollars) Multiple R R Square Adjusted R Square Standard Error Observations Regression Residual Total The number of parking spaces available to the supermarket Whether or not the supermarket home delivers for checkout customers. 0:No 1:Yes Intercept Age (Yrs) Adv.$'000 Car Spaces HomeDel Residuals 5.000 0.879406531 0.773355847 0.767103595 1.723335567 0.000 df -5.000 150 4 145 149 SS F MS 1469.409 367.352 123.692 430.633 2.970 1900.042 Coefficients Standard Error t Stat 0.480 0.026 0.002 0.008 0.329 4.322 -0.049 0.038 0.039 1.541 Age (Yrs) Residual Plot P-value 9.005 0.000 -1.881 0.062 15.252 0.000 4.845 0.000 4.676 0.000 (a) How well does the model explain sales? < (b) Is the model overall significant? < (c) Which of the four independent variables are significant in this relationship? Justify briefly (d) Based on the residual plot below, does there appear to be any problems with the regression model?< Age (Yrs) 30 Significance F 0.000 ( Lower 95% 3.374 -0.101 0.033 0.023 0.889 Upper 95% 5.271 0.003 0.043 0.055 2.192 (e) Estimate the sales of a store that is 10 years old, spends $75,000 on advertising, has 89 car spaces and does not offer home delivery.< Goodbuy's management is interested in the variation in the Sales for each supermarket for the financial year (Sales $m). Of all the potential factors, the following variables have been chosen as the factors most likely to influence the sales for each supermarket. Sales Sm: Age (Yrs): Adv.$'000: Car Spaces: HomeDel: Below is the computer output showing the result of a regression analysis between sales and Age of Store, Advertising, Car Spaces and Home Delivery as the independent variables (Note: Some output has been omitted). SUMMARY OUTPUT Regression Statistics ANOVA Sales for each supermarket for the financial year ($ million) The number of full years of operation of the store Advertising and promotional expenses for the financial year (in thousand dollars) Multiple R R Square Adjusted R Square Standard Error Observations Regression Residual Total The number of parking spaces available to the supermarket Whether or not the supermarket home delivers for checkout customers. 0:No 1:Yes Intercept Age (Yrs) Adv.$'000 Car Spaces HomeDel Residuals 5.000 0.879406531 0.773355847 0.767103595 1.723335567 0.000 df -5.000 150 4 145 149 SS F MS 1469.409 367.352 123.692 430.633 2.970 1900.042 Coefficients Standard Error t Stat 0.480 0.026 0.002 0.008 0.329 4.322 -0.049 0.038 0.039 1.541 Age (Yrs) Residual Plot P-value 9.005 0.000 -1.881 0.062 15.252 0.000 4.845 0.000 4.676 0.000 (a) How well does the model explain sales? < (b) Is the model overall significant? < (c) Which of the four independent variables are significant in this relationship? Justify briefly (d) Based on the residual plot below, does there appear to be any problems with the regression model?< Age (Yrs) 30 Significance F 0.000 ( Lower 95% 3.374 -0.101 0.033 0.023 0.889 Upper 95% 5.271 0.003 0.043 0.055 2.192 (e) Estimate the sales of a store that is 10 years old, spends $75,000 on advertising, has 89 car spaces and does not offer home delivery.<
Expert Answer:
Answer rating: 100% (QA)
To address the questions posed regarding the regression model based on the provided output a How well does the model explain sales The model explains the variability in sales fairly well as indicated ... View the full answer
Related Book For
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
Posted Date:
Students also viewed these economics questions
-
A manufacturer of fancy scented bar soaps is interested in the price elasticity shown by her popular lilac variety. She assembled data for each of the past twenty months concerning the number of bars...
-
Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
CASE STUDY 1: Facebook, Cambridge Analytica and Trump Scandal: Lessonfor Government, Business, Consumers and Voters. In early 2018, Facebook admitted to mishandling datafrom over 50 million Facebook...
-
The following transactions apply to Allied Enterprises for 2010, its first year of operations. 1. Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a...
-
Draw the electron dot formula for each of the following elements. (a) He (b) Pb (c) Se (d) Ne (e) Cs (f) Ga (g) Sb (h) Br.
-
Use information from Section 6.7 to estimate which form of electromagnetic radiation is the lowest energy ionizing radiation. Data from section 6.7 When we first introduced the concept of the...
-
Activity-based costing, service company Quikprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Quikprint classifies its various printing jobs as...
-
The price of a laser printer purchased by Paul's Printers and Office Supplies was $713. It cost $27 for delivery. The salvage value at the end of a 5-year life is $65. what is the depreciation...
-
Gourmet Coffee (GC) is a specialty coffee shop that sells roasted coffee beans. It buys green beans, roasts them in its shop, and then sells them to the consumer. GC estimates that it sells about...
-
In order to successfully sell your goods or services, you need an idea of why consumers behave the way they do when they make purchases. For example, knowing how much your customers have to spend and...
-
(a) Explain what is meant by off-balance sheet finance. (150 words) (b) Explain the problems of making comparisons of accounting information for companies in two countries where country A allows...
-
A delineation well is typically classified as a(n)_____ well? a. Development b. Exploratory c. Extension d. Wildcat e. None of these
-
Ethan Oil Corporation owns 100% of the working interest in an oil and gas lease located in a remote area of Wyoming. The royalty on the lease is 1/8. Ethan Oil does not have the funds to develop the...
-
Miss Hawkins owns the mineral rights only in a property in Garvin County, Texas. She leases the property to Garth Petroleum, reserving a 1/5 royalty. Garth Petroleum drills a successful well and...
-
Halax Oil and Gas Corporation agreed to conduct G&G studies and other exploration activities on a lease owned by Bart Energy Company in exchange for an interest in the property if proved reserves are...
-
Select the largest inner planet and the largest outer planet in your Mystery Solar System.( The Mystery Solar System is not the one which we are located, is a imaginary one, solve the question...
-
Create an appropriate display of the navel data collected in Exercise 25 of Section 3.1. Discuss any special properties of this distribution. Exercise 25 The navel ratio is defined to be a persons...
-
Distinguish between the existence and completeness assertions. State the effect on the financial statements (overstatement or understatement) of a violation of each assertion with regard to accounts...
-
Joanne Whitehead is planning the audit of a newly obtained client, Henderson Energy Corporation, for the year ended December 31, 2020. Henderson Energy is regulated by the provincial utility...
-
Below are three audit procedures performed and the assertion that the auditor was asked to evaluate. REQUIRED a) For each procedure performed, explain what specific type of procedure it is. b) For...
-
Describe and compare the properties of the least squares and generalized least squares estimators when heteroskedasticity exists.
-
Test for heteroskedasticity using a Goldfeld-Quandt test applied to (a) two subsamples with potentially different variances and (b) a model where the variance is hypothesized to depend on an...
-
Explain why the linear probability model exhibits heteroskedasticity.
Study smarter with the SolutionInn App