See the file “Practical .(مبيعات الشماسي) on umbrella sales (المطر Suppose you are interested in studying the effect of

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See the file “Practical .(مبيعات الشماسي) on umbrella sales (المطر Suppose you are interested in studying the effect of rainfall us Exam 1 Data”. The definition of the variables of interest is presented in the table below: Variable Definition/Unit Umbrellas Sold Number of umbrellas sold per month Rainfall Quantity of rainfall per month in mm The regression equation to be estimated: Umbrellas_Sold = BO + BI LN(Rainfall) + U Please note that we took the natural logarithm (LN) of Rainfall in the regression equation. 1. Assume there is a relationship between umbrellas sold and rainfall. What do you expect the sign of $1 to be? Explain why. (1 mark) 2. Estimate the regression equation. (2 marks) 3. Interpret the estimated parameters (BO and B1). (4 marks) 4. Are the coefficients statistically significant? Hint: Conduct hypotheses testing using the test of significance approach, the confidence interval approach and the p-value. (6 marks) 5. Test the following hypothesis: (2 marks) HO: B= 2 HI: B2