A chain of clothing stores wants do develop a model that can

A chain of clothing stores wants do develop a model that can predict sales based the store

Solution

1. independent variables = 1

2. dummy variables

d1 - 1 if store is 1

0 otherwise

d2 -1 if store is 2

0 otherwise

d3 - 1 if store is 3

0 otherwise

3. Model

sales = a+(b1*d1 + b2*d2+b3*d3+b4)*t + eo