what type variable is weather if it positively affects sales in the summer months.
Added by Robert C.
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The question states that weather positively affects sales in the summer months, indicating a correlation between the two variables. Show more…
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Business finds that sales increase when the outdoor temperature decreases. Identify the relation between sales and temperature. Select the correct answer below: Sales and temperature are positively correlated. An increase in temperature causes a decrease in sales.
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2. (16 pts) You are asked to investigate how weekends/weekdays and daily averaged temperature would affect ice cream sales for a supermarket. In order to understand ice cream sales, you decided to perform a multiple regression model on the data, where sales value (in $) is explained by the following three variables: #1 Temperature (in °F) #2 Whether or not the day is a weekend. (which is defined: weekend = 1, weekdays =0) #3 You also believe that the effect of temperature on sales might vary for weekends and weekdays. 1) (2 pts) The relevant variable (#2) that you will create to capture whether it’s weekend or not is called: (Single choice question, circle or write down your answer or the corresponding letter index (A, B, C or D) same for single choice questions below, no need to write down the entire answer) A. Interaction variable B. Observable variable C. Instrumental variable D. Dummy variable 2) (2 pts) The relevant variable (#3) that you will create to capture the effect of temperature on whether it’s weekend or not is called: (Single choice question, circle your answer) A. Interaction variable B. Observable variable C. Instrumental variable D. Dummy variable A regression model was created using the variables described above. The model is: Predicted sales = 10248 + 205 × Temp + 2068 × D_Weekend - 146 × D_Weekend*Temp 3) (6 pts) Write down two regression equations after simplification (combine common terms) for predicted sales on weekends and weekdays respectively based on the model. Weekends: Weekdays: 4) (3 pts) Interpret the coefficient of D_Weekend in the given model.
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