Question: Blue Casual operates 447 clothing kiosks throughout the United States. The kiosks are located in malls, on college campuses, and in other places such as sporting venues and stadia. A retail analyst wants to determine how pricing, operating hours, and ad spending for Blue Casual, and pricing and operating hours for its main competitor, WolfPack Clothiers, impact tee-shirt revenues. Blue Casual kiosks were randomly sampled and data on the average price (which includes discounts and clearances) for tee-shirts for the past year (Price, in $), average number of hours open each week for the past year (Op Hours), total advertisement spending for the past year (Ad, in $K), and total revenue from tee-shirts for the past year (Revenue, in $K) were collected. Data on the average price for tee-shirts and the average number of hours open each week (Comp Price and Comp Op Hours, respectively) for the past year were also collected for the nearest WolfPack Clothiers. The data are presented in Table F3.

1. Construct a scatterplot of Revenue and Ad. Fit a trend line and managerially interpret the results.
2. Using mathematical symbols, specify the linear model that is most appropriate for testing the impact of Blue’s and/or WolfPack’s pricing, operating hours, and ad expenditures on Blue’s tee-shirt revenue.
3. Analyze the data. Specify the analytical technique you used and managerially interpret the results. Include Excel output to support your analysis.

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