4533 Essay

654 words - 3 pages

Fall 2015 QMB 6358 Indicator Variable Assignment

An “answer collection” mechanism will appear on Canvas shortly


The data set GrocSalesMall.xlsx contains information on the annual sales of 25 stores in a grocery chain. In the file are:

Sales Last year’s sales per store in $1000 units
Customers Number of Customers last year (in 1000s)
Mall 1 = store located at a mall, 0 = otherwise

To do:
1. Create a scatterplot between Sales and Customers. Use different symbols for the Mall and nonMall Stores

2. Run a regression of Sales on number of customers

3. Run a regression of Sales on both variables.
a. Interpret the coefficient on the Mall variable
b. Is this coefficient significant?
c. Is the regression in part 3 an improvement on the one in part 2? Look at the change in R2 and adjusted R2.
d. Show what is really “going on” in the ...view middle of the document...

Is this coefficient significant?
g. Is the regression in part 4 an improvement on the one in part 3? Look at the change in R2 and adjusted R2.
h. Show what is really “going on” in the regression by deriving the equation for sales in mall stores and for sales in non-mall stores.

A: For stores in a mall, each 1000 extra customers increases sales by 5.493 more than stores not in a mall. This is a slope adjustment.
B: This is significant (t=2.223 and p-value = .037)
C: R-square increased by 0.053 and adjusted R-square by 0.046.

D: Non mall: Sales = 336.675 + 6.598 Customers

In Malls: Sales = (336.675 – 590.449) + (6.698 + 5.493) Customers
Sales = -253.774 + 12.191 Customers

5. Create a scatterplot between Sales and Customers. Add lines that show the different Mall categories and fit lines for what you got in Part 4.


6. Use version 1 of the midterm exam data sets for this. Run a regression to predict total debt by primary income, secondary income, monthly payment for mortgage or rent, utility payments and family size.

7. Now define indicator variables for the quadrants of the city. Use NW as the base category.
8. Run another regression where the three indicator variables for location are added to the model in #6.

9. Compare the model from part 6 to the one from part 8.
i. Interpret the coefficients on the location variables and test them for significance.

All else equal, a household in NE has .772 more total debt payments than one in the base category (NW). One in SE is .943 higher. One in SW is .080 lower than NW.

Note of these are significant amounts because all t-ratios are modest and p-values are .363 or higher.
j. How much does adjusted R-square change from the model in #6?

The regular r-square goes from 0.813 to 0.817, but adjusted r-square drops from 0.800 to 0.795. This would be an indication that location does not really matter, at least the way we have modeled it.

k. When you add these location variables, do any of the other variable coefficients change a great deal?

Not by a great deal. Because location does not really affect debt, this is not surprising.

Other Papers Like 4533

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Related Essays

Math533 Project Part A Essay

1062 words - 5 pages Balance($) Variable Size Mean SE Mean StDev Minimum Q1 Median Q3 Credit Balance($) 1 2781 122 272 2477 2530 2731 3058 2 3278 180 699 1864 2921 3159 3890 3 4063 119 336 3623 3772 4063 4213 4 4487 234 702 3074 4037 4764 5069 5 4533 301 673 3586 3879 4742

Statistic Analysis

1211 words - 5 pages 699 3 4063 336 4 4487 702 5 4533 673 6 5032 712 7 4911356 Interpretation From the chart we can see a clear relationship

Making A Financial Case Essay

4772 words - 20 pages | | | | | | |£320 |17 |£5440 |£4533 | |October 2014

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were