In this assignment, we will continue the analysis of the Case, "Fueling Sales at EuroPet (KEL368- PDF-ENG)" and the excel spreadsheet, "Fueling Sales at EuroPet Data Spreadsheet, Spreadsheet Supplement (KEL388-XLS-ENG)". Both files are available in the course package. The meaning of each column of the spreadsheet is provided on page 6 of the EuroPet case.

Conduct data analysis on Europet_Spreadsheet.xlsx and answer the following questions.

1. When you show your latest regression to Blanchard, he becomes rather concerned that you have not account for many other factors that could affect c-store sales. Surely, Tyler will sooner or later complain about that fact. He asks you to extend your analysis. To address Blanchard's concerns, include all other variables in the spreadsheet (excluding the week of the year). In addition, Blanchard argues that TV and Radio advertising affect c-store sales differently during weeks with a holiday than during weeks with no holidays. In particular, he believes that TV and radio advertising have a significantly larger influence on c-store sales in weeks without holidays than in holiday weeks.

a. Modify your regression to address Blanchard's concerns. Write down the regression model.

b. Based on the result, is there evidence that support Blanchard's claim about the effect of TV and Radio advertising during holiday weeks?

A. Yes. B. No.

2. You notice that temperature has a statistically significant effect on c-store sales in all of your recent regressions. You believe that the coefficients of temperature in your regressions somewhat overstate the effect of temperature on c-store sales for weeks in which there is a holiday. You know that the French love their holidays and often take advantage of their free time by taking car trips. That means they will be visiting c-stores during holidays even if the weather is bad. Therefore, you believe that temperature will have a significantly stronger effect on c-store sales in weeks without a holiday than in weeks with a holiday. Modify your regression model to examine your hunch.

a. Write down the regression model. (Example of a regression model: y = a + b*TV_Advertising + c*Radio_Advertising)

b. Based on the result, is there evidence that support your hunch?

A. Yes. B. No.

3. Based on this regression model, conduct analysis of the profitability of Europet's TV and Radio advertising. What is your overall conclusion regarding the profitability of EuroPet's TV and Radio advertising in Marseille area? Write down your conclusion and provide details of your analysis.