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The manager of Collins Import Auto believes the number of cars sold in a day (Q) depends on two factors: (1) the number of hours the dealership is open (H) and (2) the number od salespersons working that day (S). After collecting data for two months (53 days), the manager estimates the following log-linear model: Q=aHbSc.The computer output for the multiple regression analysis is below: Obs: 53R-Square: 0.5452F-Ratio 29.97P-Value on F: 0.0001Vaiable ParameterEstimate Std Error T-Ratio P-ValueIntercept 0.9162 0.2413 3.80 0.0004 LNH 0.3517 0.1021 3.44 0.0012LNS 0.2550 0.0785 3.25 0.0021b. How d you interpret coefficients b and c? If the dealership increases the number of salespersons by 20% , what will be the % increase in daily sales? c. Test the overall model for statistical significance at the 5% significance level.d. What percent of the total variation in daily auto sales is explained by this equation? what could you suggest to increase the percentage? e. Test the intercept for statistical significance at the 5% level of significance. If H and S both equal zero, are sales expected to be zero? Explain why or why not. f. Test the estimated coefficient b for statistical significance. If the dealership decreases its hours of operation by 10%, what is the expected impact on daily sales?
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