Sherri Cola Company Has Developed a Regression Model Relating Its

Essay

Sherri Cola Company has developed a regression model relating its sales (y in $10,000s) with four independent variables.The four independent variables are price per unit (PRICE, in dollars), competitor's price (COMPRICE, in dollars), advertising (ADV, in $1000s), and type of container used (CONTAIN; 1 = Cans and 0 = Bottles).Part of the regression results is shown below.Here, n = 25. $$\begin{array} { l l l } & \text { Coefficients } & \text { Stcanda } \\\text { Intercept } & 443.143 & \\\text { PRICE } & - 57.170 & 20.426 \\\text { COMPRICE } & 27.681 & 19.991 \\\text { ADV } & 0.025 & 0.023 \\\text { CONTAIN } & - 95.353 & 91.027\end{array}$$ ​
a.
If the manufacturer uses can containers, his price is $1.25, advertising cost is $200,000, and his competitor's price is $1.50, what is your estimate of his sales? Give your answer in dollars.
b.
Test to see if there is a significant relationship between sales and unit price. Let α = .05.
c.
Test to see if there is a significant relationship between sales and advertising. Let α = .05.
d.
Is the type of container a significant variable? Let α = .05.
e.
Test to see if there is a significant relationship between sales and competitor's price.
Let α = .05.