A large sportssupplier has many stores located world wide. A regression model isto be constructed to predict the annual revenue of a particularstore based upon the population of the city or town where the storeis located, the annual expenditure on promotion for the store andthe distance of the store to the center of the city.

Data has beencollected on 30 randomly selected stores: (AT BOTTOM)

Find the multipleregression equation using all three explanatory variables. Assumethat x₁ is population, x₂ is annualpromotional expenditure and x₃ is distance to citycenter. Give your answers to 3 decimal places.

a) y^ = BLANK + BLANKpopulation + BLANK promo. expenditure + BLANK dist. to city

e)Thevalue of R² for this model, to 3 decimal places, isequal to

f)Thevalue of s for this model, to 3 decimal places, is equal to

g)Construct a new multiple regression model byremoving the variable distance to city center. Give youranswers to 3 decimal places.

The new regressionmodel equation is:

y^ = + population +promo. expenditure

At a level ofsignificance of 0.05, the result of the F test for this model isthat the null hypothesis A) Is B) is not rejected.

c)Theexplanatory variable that is most correlated with annual revenueis:

population
promotional expenditure
distance to city

d)Theexplanatory variable that is least correlated with annual revenueis:

population
promotional expenditure
distance to city

H) In the new modelcompared to the previous one, the value of R² (to 3decimal places) is:

increased
decreased
unchanged

i)Inthe new model compared to the previous one, the value of s (to 3decimal places) is:

increased
decreased
unchanged

Annual revenue ($) (× 1000)	Population (× 1000)	Annual promotional expenditure ($) (× 100)	Distance to city center (mi)
195	124	142	19
104	90	64	9
294	459	138	6
316	667	95	19
228	189	158	18
406	849	74	7
247	284	177	19
204	267	113	19
60	46	100	9
539	918	172	15
575	942	175	8
326	677	90	14
275	479	129	1
470	834	168	1
308	435	129	5
318	475	178	7
512	915	95	18
153	183	173	11
219	266	134	16
443	687	197	15
225	177	184	1
233	192	185	18
303	612	93	5
507	981	93	16
487	923	138	2
432	963	44	17
180	138	165	10
448	820	55	11
461	719	156	10
97	48	115	19