Reference no: EM1318151

Fran's convenience marts are located all through the metro Erie. Pennsylvania. Fran, owner would like to enlarge into other communities in north western PA. And south-western New York like Jamestowne, Corry, Meadville, and Warren. As part of her presentation to local bank, she would like to better understand factors which make particular outlet profitable. She should do all work herself, so she will not be able to examine all her outlets. She chooses a random sample of 15 marts and records average daily sales (Y) floor space (area) number of parking spaces, and median income of families in that zip code region for each. Sample information is below.  

1) Find out the regression equation

2) Determine the value of Rsquare? Comment on value.

3) Carry out a global hypothesis test to find out if any of dependent variables are different from zero.

4) Carry out individual hypothesis tests to find out if any of the independent variables can be dropped.

5) If variables are dropped, recomputed regression equation and R square

Sampled mart	Daily sales	Store area	Parking spaces	Income
1	1840	532	6	44
2	1746	478	4	51
3	1812	530	7	45
4	1806	508	7	46
5	1792	514	5	44
6	1825	556	6	46
7	1811	541	4	49
8	1803	513	6	52
9	1830	532	5	46
10	1827	537	5	46
11	1764	499	3	48
12	1825	510	8	47
13	1763	490	4	48
14	1846	516	8	45
15	1815	482	7	43