Q17 please help me Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand fortheir line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are themain drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market.Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the datathat follow:YEAR123456789101112UNIT SALES(THOUSANDS)3996998991,3021,1371,193899y bar =1,1059701,233898809PRICE $/UNITForecasted sales281224211217224198228207220211233252+ADVERTISING($000)a. Perform a regression analysis based on these data using Excel.Note: Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.6208231,1051,4031,2081,3028981,105693898693693Price+c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $299 per unit andthe amount spent on advertising (in thousands) was $890.Note: Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places.thousand unitsadvertising

Answered: a. Perform a regression analysis based…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Q17 please help me

Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for
their line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the
main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market.
Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data
that follow:
YEAR
1234567
8
9
10
11
12
UNIT SALES
(THOUSANDS)
399
699
899
1,302
1,137
1,193
899
y bar =
1,105
970
1,233
898
809
PRICE $/UNIT
Forecasted sales
281
224
211
217
224
198
228
207
220
211
233
252
+
ADVERTISING
($000)
a. Perform a regression analysis based on these data using Excel.
Note: Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.
620
823
1,105
1,403
1,208
1,302
898
1,105
693
898
693
693
Price
+
c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $299 per unit and
the amount spent on advertising (in thousands) was $890.
Note: Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places.
thousand units
advertising

Expert Solution

Step 1

A strong statistical technique that enables you to analyze the connection between two or more relevant variables is regression analysis. Regression analysis comes in a variety of forms, but at its heart, all of them look at how one or maybe more independent variables affect a dependent variable. Regression analysis offers thorough knowledge that may be used to enhance goods and services even further. We may assess whether or whether these factors have affected aggregate attendee satisfaction, and if they have, to what degree, by running a regression analysis on just about any set of data.