please answer the questions below using the text book attached

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1. Question 5, page 500.

a. You need not calculate the equation–simply plot the data, fit a line to them, and estimate the coefficients from your line.

b. Effect of increasing price by $150?

3. Question 7, page 501. *Note that X1 in the model is not the same as X.

4. A chain of bookstores wants to develop multiple regression models of sales for two purposes. First, they want to be able to evaluate potential locations for new stores, and, second, they want to establish norms that can be used to evaluate the performance of store managers (i.e., they want to be able to predict the sales of an “average” store, so they can judge the input of each manager). *Note this is essentially proposing theories of what makes a location attractive and what makes a store successful.

a. Identify the variables that should be included in the model for locations.

c. Identify the variables that should be included in the model for evaluating managers.


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