Regression and Forecasting

 Assignment #3

1. Using Excel, run three separate regressions, one each for each of the three stores. The dependent variable is per capita sales.  Include all X variables except LA, CHI, NY, the three binary variables that indicate which observations are for which city.

2. Discuss the following results in a short paper

1. Begin the paper by specifying your hypothesized sign (+,-) for the coefficient of each variable for which economic theory suggests a sign. E.g. economic theory suggests that per capita sales should be negatively related to own price.  Indicate which variables have no hypothesized sign.

1. Present the Excel results for each store separately. For each store

• Present findings of whether estimated sign of the coefficient matches the hypothesized sign.
• Present evidence of the test of the appropriate hypothesis
• Discuss R².

1. Summarize differences and similarities between results for the three stores.