A chain of clothing stores wants do develop a model that can predict sales based the store's location. A sample of past December sales in the four stores is given below
|
Store
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
1
|
31
|
41
|
39
|
36
|
32
|
|
2
|
24
|
31
|
34
|
28
|
23
|
|
3
|
54
|
60
|
57
|
52
|
62
|
|
4
|
34
|
42
|
40
|
46
|
47
|
1. How many independent variables are needed in this problem?
2. Identify the coding scheme (introduce dummy variables and define them).
3. Propose a model that can show this relationship.
4. Fit the model to the data of the problem.
5. Make interpretation of all coefficients in the problem.
6. Graph the model.