A manager of a large chain of nationwide sporting goods stores would like to kno

Question

A manager of a large chain of nationwide sporting goods stores would like to know which of the following factors has the strongest link to sales: Age (median age of customer base in years), HS (percentage of customer base with a high school diploma), College (percentage of customer base with a high school diploma), Growth (annual population growth rate of customer base over the past 10 years), and Income (Median family income of customer base in dollars). Looking at the file WK3_X1.xls what do you conclude? The data stored in the file WK3_X1.xls are the monthly sales totals from a random sample of 38 stores in the franchise. All stores in the franchise and thus within the sample, are approximately the same size and carry the same merchandise. The county, or in some cases the counties in which the store draws the majority of its customers is referred to here as the customer base. For each of the 38 stores, demographic information about the customer base is provided. The data are real, but the name of the franchise is not used, at the request of the company. I could not upload data so I will post below. Can you please walk me through how you figured out the answer.

Store Sales Age Growth Income HS College 1 1695712.620 33.1574 0.8299 26748.51 73.5949 17.8350 2 3403862.053 32.6667 0.6619 53063.79 88.4557 31.9439 3 2710352.905 35.6553 0.9688 36090.14 73.5362 18.6198 4 529215.459 33.0728 0.0821 32058.07 79.1780 20.6284 5 663686.654 35.7585 0.4646 47843.42 84.1838 35.2032 6 2546324.335 33.8132 2.1796 50180.97 93.4996 41.7057 7 2787046.202 30.9797 1.8048 30710.08 78.0234 28.0250 8 612696.054 30.7843 -0.0569 29141.70 70.2949 15.0882 9 891822.033 32.3164 -0.1577 25980.15 70.6674 10.9829 10 1124967.965 32.5312 0.3664 18730.88 63.7395 13.2458 11 909500.976 31.4400 2.2256 31109.23 76.9059 19.5500 12 2631166.881 33.1613 1.5158 35614.12 82.9452 20.8135 13 882972.654 31.8736 0.1413 23038.43 65.2127 16.9796 14 1078573.124 33.4072 -1.0400 34531.72 73.4944 32.9920 15 844320.194 34.0470 1.6836 30350.36 80.2201 22.3185 16 1849119.029 28.8879 2.3596 38964.94 87.5973 24.5670 17 3860007.316 36.1056 0.7840 49392.77 85.3041 30.8790 18 826573.880 32.8083 0.1164 25595.69 65.5884 17.4545 19 604682.868 33.0538 1.1498 29622.61 80.6176 18.6356 20 1903611.600 33.4996 0.0606 31586.10 80.3790 38.3249 21 2356808.391 32.6809 1.6338 39674.56 79.8526 23.7780 22 2788571.957 28.5166 1.1256 28878.98 81.2371 16.9300 23 634878.286 32.8945 1.4884 24287.08 70.2244 19.1429 24 2371627.369 30.5024 4.7937 46711.24 87.1046 30.8843 25 2627837.961 30.2922 1.8922 33449.81 80.2057 26.5570 26 1868116.330 31.2911 1.8667 31694.45 75.2914 28.3600 27 2236796.862 33.0498 1.7896 25459.22 77.6162 19.2490 28 1318876.234 32.9348 0.2707 47047.34 85.1753 35.4994 29 1868097.836 31.8381 3.0129 26433.24 74.1792 18.6375 30 1695218.566 31.0794 23.4630 33396.66 81.6991 41.1130 31 2700194.415 32.1807 0.7041 26179.36 73.4140 17.8566 32 1156049.774 31.6944 -0.1569 33454.64 73.7161 26.5426 33 643858.444 34.0263 0.7084 42271.50 78.6493 29.8734 34 2188687.363 34.7315 0.1353 46514.75 80.9503 24.5374 35 830351.940 30.5613 0.3848 27030.81 66.8057 14.1390 36 1226905.572 33.5183 0.7417 42910.08 77.8905 20.8340 37 566903.589 32.3952 0.6693 40561.40 79.3622 19.0309 38 826518.398 29.9108 0.1111 22325.96 58.3610 10.6729

Explanation / Answer

We see that only HS has p-value less than 0.10 , that is 0.08327

less are more than 0.50 ,which are insignificant

hence

HS (percentage of customer base with a high school diploma) has the strongest link to sales:

SUMMARY OUTPUT Regression Statistics Multiple R 0.494453724 R Square 0.244484485 Adjusted R Square 0.126435186 Standard Error 848433.2576 Observations 38 ANOVA df SS MS F Significance F Regression 5 7.45407E+12 1.49081E+12 2.071037157 0.095018 Residual 32 2.30348E+13 7.19839E+11 Total 37 3.04889E+13 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept -2270706.232 3696533.342 -0.614279927 0.543373431 -9800298 5258886 -9800298 5258886 Age -27383.61977 93045.54327 -0.2943034 0.770426779 -216911 162143.9 -216911 162143.9 Growth 2084.475191 44097.87917 0.047269284 0.96259239 -87740 91908.92 -87740 91908.92 Income 2.44841638 30.5312662 0.080193739 0.936582612 -59.7417 64.63857 -59.7417 64.63857 HS 62735.40791 35089.97112 1.787844387 0.083275167 -8740.52 134211.3 -8740.52 134211.3 College -5702.449636 28358.81719 -0.201082069 0.841907096 -63467.5 52062.57 -63467.5 52062.57

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