Essay
The Natural Drink 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 $1,000s) and type of container used (CONTAIN; 1 = Cans and 0 = Bottles). Part of the regression results is shown below. (Assume n = 25)
a.If the manufacturer uses can containers, his price is $1.25, advertising $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 = 0.05.
c.Test to see if there is a significant relationship between sales and advertising. Let = 0.05.
d.Is the type of container a significant variable? Let = 0.05.
e.Test to see if there is a significant relationship between sales and competitor's price. Let = 0.05.
Correct Answer:
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a.$3,228,490
b.t = -2.8 < - 2....View Answer
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Correct Answer:
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b.t = -2.8 < - 2....
View Answer
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