The manager of a car dealership believes the number of cars sold in a day depends on two factors:

i.The number of hours the dealership is open (H)

ii. The number of salespersons working that day (S)

Using the data attached below, estimate the following log-linear model: Q = a*(H^b)*(S^c). Note: You will need to transform the data before performing the regression.

Q1: What percent of the total variation in daily auto sales is explained by this model?

Q2:If the dealership increases the number of salespersons by 20%, what will be the percentage increase in daily sales?
 

Transcribed Image Text:

Day Q (cars sold) H (hours open) S (salespersons) 1 132 11.4 9 80 8.3 7 231 12.3 11 4 81 11.3 7 5 190 9.9 10 77 10.5 9 7 160 10.5 10 8. 68 8.7 9 9 133 12.7 12 10 25 11 78 5.8 10 12 167 13.5 13 50 7.6 5 14 34 6.1 8 15 54 4.3 11 16 129 13.3 7 17 134 12.9 10 18 41 4.2 10 19 46 4.5 6 20 54 6.4 10 21 127 9 10 22 46 6 7 23 61 7.9 5 24 82 8.4 9. 25 98 13.2 6 26 85 9.6 27 87 7.1 11 28 131 9.8 29 35 5.2 12 30 61 8.3 4 Day Q (cars sold) H (hours open) S (salespersons) 1 132 11.4 9 80 8.3 7 231 12.3 11 4 81 11.3 7 5 190 9.9 10 77 10.5 9 7 160 10.5 10 8. 68 8.7 9 9 133 12.7 12 10 25 11 78 5.8 10 12 167 13.5 13 50 7.6 5 14 34 6.1 8 15 54 4.3 11 16 129 13.3 7 17 134 12.9 10 18 41 4.2 10 19 46 4.5 6 20 54 6.4 10 21 127 9 10 22 46 6 7 23 61 7.9 5 24 82 8.4 9. 25 98 13.2 6 26 85 9.6 27 87 7.1 11 28 131 9.8 29 35 5.2 12 30 61 8.3 4

Answer rating: 100% (QA)

1 The explained part of variation is shown by the value of R 2 Therefore the indep... View the full answer