You have been hired to help a large supermarket retail chain. they are trying to understand how aisle location of specialty pet food - whether specialty pet food is placed at the front or back of the aisle, and shelf space allocated to it (in square feet) affect its sales. An data analyst colleague provided the following regression analysis.
You have been hired to help a large supermarket retail chain. they are trying to understand how aisle location of specialty pet food - whether specialty pet food is placed at the front or back of the aisle, and shelf space allocated to it (in square feet) affect its sales. An data analyst colleague provided the following
- Sales: weekly sales in $ (dependent variable)
- aisle location: 1 if the product was placed at the front of the aisle; 0 if the product was placed at the back of the aisle
- Shelf space: shelf space occupied by specialty pet food (in square feet)
- Use the attached regression analysis to answer the following questions:
Question A.
If two stores A and B had the same shelf space allocated to specialty pet food but store A placed this product at the front of the aisle whereas store B placed this product at the back of the aisle, which of these two stores would have higher sales of this specialty pet food? A or B?
Question B
Suppose that you have increased the shelf space occupied by specialty pet food by 5 sq. feet, keeping the location of the product on the aisle unchanged. By how much would you expect your sales of this pet food to increase?
![Number of obs
58
F(3, 8)
125.14
Prob > F
0.0000
R-squared
0.7698
Root MSE
21.243
sales |
Coef. Std. Err.
P>|t|
[95% Conf. Interval]
aislelocation |
75
20.36541
3.68
0.006
28.03728
121.9627
shelfspace |
7.8
4.040075
1.93
0.053
-0.1185
15.7185
„cons |
120
19.2873
6.22
0.000
75.5234
164.4766
II
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c4e2f12-9ab9-4093-b55f-1f11c82fba37%2F2803a73d-6bd3-437b-8f13-d8f0c12f7ce1%2Fyn5pxah_processed.png&w=3840&q=75)
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