Question: Question 1: (You will need to use a software to help you on this ques­tion. Otherwise the calculation will be long. If you are using software, please include the output. On the output, indicate where your answer for each ques­tion is.) Gilmore Accounting collected the following in an effort to explain variation in client profitability. The data are:

where y is the net profit earned from the client, X1 is the number of hours spent working with the client, and X2 is an indicator of the type of client (X2 = 1 means manufacturing client, X2 = 2 means service client, and X2 = 3 means governmental client).

a. Fit a model to the data that incorporates the number of hours spent working with the client and the type of client as independent variables. Interpret the estimated coefficients.

b. Report the coefficient of determination. Based on this value, is the model a good model?

c. Test at 5% level of significance that if the model is a significant model.

d. Best on the result in part (a), what is the best fitted model for the governmental client?

e. Find a 99% confidence interval for the coefficient of x1. Interpret the estimated coefficient in the context of this question.