Question: The district manager of a store is investigating why certain stores in her region are performing better than others. She believes that three factors are related to total sales: number of competitors, the population in the surrounding area and the amount spent on advertising. She randomly selects 30 stores in her district and has gathered the following information: (10 points)

Y = Total Sales Last Year ($ thousands)

X1=Number of Competitors

X2=Populations (in millions)

X3=Advertising Expenses ($ thousands)

a. What is the estimated sales for a store which has 4 competitors, regional population of .4 (i.e. 400K), and advertising expense of $30K? (2)

b. Compute R2. (2)

c. Conduct a global test of hypothesis to determine whether any of the regression coefficients are not equal to zero using a .05 level of significance. (3)

d. Conduct tests of hypotheses to determine which independent variables have significant regression coefficients using a .05 level of significance. (3)