Economics

San Francisco Bread: Q is the dependent variable; price, competitor’s price, advertising, and income are independent variables.

After regressions are completed:

1. Write regression equation in form:

y = a + b1*x1 + b2*x2 + b3*x3 + b4*x4 + ε (Frisco)

2. Identify R2, Adj. R2, F-statistic and standard error of the estimate (SEE).

3. Identify critical F-statistic and t-statistic for α = 0.05.

4. Create two new columns in Frisco file — revenue and adv. % (of sales) then re-run the regression.