Exercise 4.8 Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables. Y=α+βaA+βpP+εY=α+βaA+βpP+ε Now suppose that the estimate of the model produces following results: α=344.585α=344.585 , ba=0.106ba=0.106 , bp=−12.112bp=−12.112 , sba=0.155sba=0.155 , sbp=4.421sbp=4.421 , R2=0.813R2=0.813 , and F-statistic=10.372F-statistic=10.372 . Note that the sample consists of 10 observations. According to the estimated model, holding all else constant, a $1,000 increase in promotional expenditures selector 1
Which of the independent variables (if any) appears to be statistically significant (at the 0.05 level) in explaining paint sales? Check all that apply. Selling price (P) Promotional expenditures (A) What proportion of the total variation in sales is explained by the regression equation? 0.813 0.106 0.155 The given F-value shows that you selector 1
Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are $100,000and the selling price is $11.50? 235.907 194.697 215.897 When promotional expenditures are $80,000 and the selling price is $11.50, the point price elasticity is selector 1
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Exercise 4.8 Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales...
The following is the regression output for fitting the regression model that predicts the monthly sales of the power bars from the price of the power bar and the monthly budget for the in-store promotional expenditures. Constant Price Promotion Coefficient 6310.55 -50.855 3.5554 95% CI 95% CI Lower Limit Upper Limit 4052.83138 8568.26862 -79.76212 -21.94788 1.72715 5.38365 TP-value 5.89715 2e-05 -3.7117 0.00173 4.10297 0.00074 Use the regresion output above to answer the following questions. Part A What is the predicted...
Domestic Car Sales Consider the following multiple regression model of domestic car sales (DCS) where: DCS = domestic car sales DCSP = domestic car sales price (in dollars) PR = prime rate as a percent (i.e., 10% would be entered as 10) Q2 = quarter 2 dummy variable Q3 = quarter 3 dummy variable Q4 = quarter 4 dummy variable Multiple Regression — Result Formula DCS = 3,266.66 + ((DCSP) × −0.098297) + ((PR) × −21.17) + ((Q2) × 292.88)...
1. One Price Realty Company wants to develop a model to estimate the value of houses in its inventory The office manager has decided to develop a multiple regression model to help explain the variation in house values. (25 points) The office manager has chosen the following variables to develop the model: X1 square feet X2- age in years x3- dummy variable for house style (1 if ranch, 0 if not) X4-2d dummy variable for house style (I if split...