a. Write out the multiple regression equation.

b. Estimate the regression coefficients using ordinary least squares and interpret them.

c. Predict the weekly sales for a store with 10 feet of shelf space situated at the back of the aisle.

d. At the 0.05 level of significance, determine whether each independent variable makes a contribution to the regression model.

Sales Space Place

1.6 5 0

2.2 5 1

1.4 5 0

1.9 10 0

2.4 10 0

2.6 10 1

2.3 15 0

2.7 15 0

2.8 15 1

2.6 20 0

2.9 20 0

3.1 20 1

1.9 10 0

2.4 10 0

2.6 10 1

2.3 15 0

2.7 15 0

1.4 5 0

1.9 10 0

2.4 10 0

Place = 1 indicates front of aisle

Place = 0 indicates back of aisle

Space = feet of shelf space

Sales given in 1000/week

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