Question

Observations are taken on sales of a certain mountain bike in 30 sporting goods stores. The regression model was Y = total sales (thousands of dollars). X = display floor space square meters). X- competitors' advertising expenditures (thousands of dollars). X, advertised price (dollars per unit) Predictor Intercept FloorSpace Competing Ads Price Coefficient 1203 91 11.29 -8.889 -0.1448 (a) Write the fitted regression equation (Round your coefficient Competing Ads to 3 decimal places, coefficient Price to 4 decimal places, and other values to 2 decimal places. Negative values should be indicated by a minus sign.) Floor Space - Competing4ds+ Price (b-1) The coefficient of Floor Space says that each additional square foot of floor space adds about 8 889 to sales in thousands of dollars) takes away 0.1498 from sales (in thousands of dollars) adds about 11.29 to sales in thousands of dollars) takes away 11.29 from sales (in thousands of dollars). (5-2) The coefficient of CompetingAds says that each additional $1,000 of "competitors' advertising expenditures adds about 6.889 to sales (in thousands of dollars) takes away 0.1446 from sales in thousands of dollars). reduces sales by about 6.889 from sales (in thousands of dollars). takes away11.29 from sales in thousands of dollars) (5-3) The coefficient of Price says that each additional $1 of advertised price takes away 11.29 from sales in thousands of dollars) reduces sales by about 6.889 from sales in thousands of dollars) reduces sales by about 0.1446 from sales (in thousands of dollars) adds about 6.889 to sales in thousands of dollars) (c) The intercept is not meaningful, since a mountain bike cannot sell for zero, which will happen if all the variables are zero False True (d) Make a prediction for Sales when Floor Space = 34. Competing4ds = 88. and Price = 1,138. (Enter your answer in thousands. Round your answer to 2 decimal places.) Sales S thousand

Answer 1

Answer Date: 21/04/2020 The regression equation of total sales (y) on floor space, competing ads and price (x's) is, û = Be + B. X2 + B2 x2 + B; x; = 1263.91+11.29x; -6.889x2 -0.1446 xz 6-1) Interpretation of coefficients floor space B = 11.29. For each unit increase in floor space, the mean total sales are estimated to increases 11.29 holding competing ads and price independent variable is constant. The answer option is 3. b-2)

Interpretation of coefficients competing ads B = -6.889. For each unit increase in competing ads, the mean total sales are estimated to decreases 6.889 holding floor space and price independent variable is constant. The answer option is 3 b-3) Interpretation of coefficients price By = -0.1446. For each unit increase in price, the mean total sales are estimated to decreases 0.1446 holding competing ads and floor space independent variable is constant. The answer option is 3). The intercept is not meaningful, since a mountain bike cannot sell for zero, which will happen if all the variables are zero due to it is no other meaning than y-intercept.

The answer is True d) The prediction for sales when floor space 84, competing ads 88 and price 1138 is, j = Be + B, xz + B2 x2 + B; x; = 1263.91+11.29 x 84 -6.889 88 -0.1446x 1138 = 1441.4832 = 1441.48 The prediction for sales when floor space 84, competing ads 88 and price 1138 is 1441.48