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  3. Building Response Models in R

Exercise

The effect of display on sales

To see how much of an effect the DISPLAY actions have on log(SALES) you construct a simple response model for explaining log(SALES) by DISPLAY. The log(SALES) ~ DISPLAY relation is again estimated by the function lm(). Finally, you investigate the coefficients.

Instructions

100 XP
  • Explain log(SALES) by DISPLAY. Use the function lm() and assign the result to an object called dummy.model.
  • Obtain the coefficients of the dummy.model by using the function coef().