(See Solution) Look over the expenditure categories that the CEO gave you. Check to see if there interaction between the category Capital Equipment and


Question: Look over the expenditure categories that the CEO gave you. Check to see if there interaction between the category Capital Equipment and Materials, and the category Salary and Benefits. Namely, do a multiple regression model with quarterly sales as the y-variable and the four expenditure categories given in the Data set as the x-variables. Do a second multiple regression model with four expenditure categories plus an interaction term between the category Capital Equipment and Materials, and the category Salary and Benefits. After comparing the two models, which is the better model? Can you conclude whether the two categories are independent of each other? (10 pts)

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