The manager of supermarket wants to model the total weakly sales of beer, y as a function of brand. This model will enable the manager to plan the story’s inventory. The market carries three bands: beta 1, beta 2, beta 3. a) What type of independent variable is Brand of beer?
b) Write the model relating mean weekly beer sales, E (y), as function of brand of beer. Be sure to explain any dummy variables you use.
c) Interpret the \beta parameters of your model in part b.
d) In terms of the model parameters, what is the mean weekly sales for brand beta 3?
Suppose the manager uses brand beta 1 as the base level and obtains the prediction equation: y = 450 + 60x1 - 30x2
where x1 = 1 if brand beta 2 0 otherwise ; x2 = 1 if brand beta 3 0 otherwise
a) What is the difference between the estimated mean weekly sales for brands beta 2 and beta 1?
b) What is the estimated mean weekly sles for brand beta 2?