1. Price of beef. How is the price of beef related to other factors? The data in the following table give information on the price of beef (PBE) and the possible explanatory variables: consumption of beef per capita (CBE), retail food price index (PFO), food consumption per capita index (CFO), and an index of real disposable income per capita (RDINC) for the years 1925 to 1941 in the United States.
a) Using computer software, find the regression equation predicting Wal-Mart revenues from the Retail Index, the Consumer Price index (CPI ), and Personal Consumption.
b) Does it seem that Wal-Mart's revenue is closely related to the general state of the economy?
2. Wal-Mart revenue, part 3. Consider the model you fit in Exercise 37 to predict Wal-Mart's revenue from the Retail Index, CPI, and Personal Consumption index.
a) Plot the residuals against the predicted values and com- ment on what you see.
b) Identify and remove the four cases corresponding to December revenue and find the regression with December results removed.
c) Does it seem that Wal-Mart's revenue is closely related to the general state of the economy?