Question: As the newly hired Forecast Analyst for the Pamana Refrigerator Company, you wish to develop a multiple regression model for explaining weekly sales. You gather information on:

WkSls(units) – weekly sales in (number of refrigerators)

AvgPrice($) – Average price of the product (in dollars) including discounts and promotions

Population – Population of the 7 County metropolitan area (in thousands of people)

DInc(hundred$) – Disposable income in the 7 County metropolitan area (in hundreds of dollars)

HouseStarts – Housing starts in the 7 County metro area (single family housing units)

The computer output for the multiple regression is shown below

1. Does the regression model have significant explanatory power? Justify your answer.
2. Fully interpret R2 in terms of the application.
3. Fully interpret the coefficient on Population in terms of the application
4. Are the sign of the regression slope coefficients as expected? Explain.
5. Which independent variables have a significant influence on weekly sales? Justify your answer. How does it help us in forecasting?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document