You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years....

	Hi Price	Lo Price
Hi Adv	832	1102
	625	888
	821	1056
	605	1407
	545	878
	701	977
	454	999
	605	1212
	787	905
	568	655
Lo Adv	353	698
	686	758
	455	987
	501	754
	801	625
	563	741
	423	532
	877	976
	235	668
	540	802
No Adv	555	689
	350	444
	623	356
	421	690
	356	587
	489	568
	454	568
	423	452
	323	513
	428	425

Q1. Consider a regression model (Model I) that has feature advertising as a single independent variable with intercept. Estimate your model and interpret your estimation results.

Q2. Update above regression model (Model II) by adding an additional independent variable. average price in order to capture the effect of price promotion activities such as coupon during week. Estimate your model and interpret your estimation results. Do you think which model makes more sense between Model I and Model II? Why?

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orchestra answered 1 year ago

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