Find what will be the percentage increase in daily sales

Reference no: EM13221915

The manager of Collins Import Autos believes the number of cars sold in a day (Q) depends on two factors:

(1) the number of hours the dealership is open (H) and (2) the number of salespersons working that day

(S). After collecting data for two months (53 days), the manager estimates the following log-linear model:

Q = aHbSc a. Explain how to transform the log-linear model into a linear form that can be estimated usingmultiple regression analysis.

b. How do you interpret coefficients b and c? If the dealership increases thenumber of salesperson by 20 percent, what will be the percentage increase in daily sales?

c. Test theoverall model for statistical significance at the 5 percent significance level.

d. What percent of the totalvariation in daily auto sales is explained by this equation?

e. Test the intercept for statistical significance atthe 5 percent level of significance. f. Test the estimated coefficient b for statistical significance.

Reference no: EM13221915

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