Location sales (in thousands) advertising (in thousands) adv^2 years in business adv*years dwest dsouthsouth 340 8 4 north 651 42 6 west 459 35 2 west 1400 65 16 north 943 40 11 south 425 24 4 west 589 10 8 south 492 17 7 north 490 15 8 south 920 33 15 north 1040 45 14 west 403 30 3 south 594 27 8 south 599 30 10 west 293 12 4 north 855 40 12 south 343 19 6 west 891 45 12 north 395 20 3 west 862 40 12 south 350 12 5 west 871 48 11 north 405 22 2 south 193 8 3 south 185 10 2
assignment: we are trying to explain the variation in sales from storefront to storefront using advertising budgets, years in business, and store location. ad^2 is a quadratic term for advertising. adv*years in an interaction term. for store location, north will be the omitted category or null state, and dsouth and dwest are dummy variables for stores located in the south or west.1. complete the data for adv^2, adv*years, south, and west. regress sales on advertising, adv^2, years in business, adv*years, south, and west.2. predict sales for a store in the west with $30,000 in advertising expenditures and 5 years in business.3. rank the regions based on sales from highest to lowest, holding adv and years in business constant.