Reference no: EM132522756

A toothpaste manufacturer wants to determine the effects packaging displays, store type, and store location on sales of toothpaste. There are three packaging displays (A, B, and C). There are three types of stores (GR = grocery, DI = discount, and DE = department store) and three types of store locations (U = urban, S = suburban, and R = rural). There is data from nine stores.

Dummy variables were used to model store location, store type and display. For store location, Rural (R) was the reference category. For store type, department store (DE) was the reference category, and for display, Display C was the reference category. Here is the regression report:

a. If you were using the backward stepwise regression with an alpha to leave of 0.1, would you eliminate a variable? If so, which one?

b. Perform a hypothesis on the slope for the packaging display variable "B" using a confidence level of 95%.

c. Forecast the sales for a rural discount store using packaging display C.

d. What is the 95% confidence interval for your prediction in part c?