the marketing manager wants to predict the sales volume for the locality on the basis of # households, number of cars and marketing expense on the basis of the following data:

Sl.No.	Sales Volume	#Households	number of cars	marketing expense
1	15727	161	3	180
2	9328	99	1	150
3	13681	135	2	175
4	12379	120	2	165
5	15351	164	3	178
6	24174	221	5	220
7	20154	179	4	205
8	20671	204	5	210
9	22978	214	5	128
10	13522	101	1	176
11	22471	231	5	226
12	19529	206	4	296
13	24216	248	3	240
14	11521	107	2	168
15	19782	205	3	100

i. Draw three scatter plots of sales volume with each of the three variables and comment on their correlation.
ii. Regress the sales volume on #household, number of cars, and marketing expenses. Calculate R square and interpret the same.
iii. Determine which variable is/are significant variable/s. Is there any insignificant variable? If yes, regress again, by dropping the variable. Will dropping that variable increases the adjusted R square?

 

Answer rating: 100% (QA)

i ii Coefficient Standard errors tStat Rvalue Household 129317 4360167 029659 0772306 No of cars 262... View the full answer