As a marketing manager for TriFood, you want to determine whether store Sales (# sold in one month) of TriPower bars are related to price (in cents) of TriPower bars and in-store promotional expenditures (in dollars) for TriPower bars. You conduct a multiple regression analysis with store Sales (Y) as the response variable, and Price (X1) and Promotion (X2) as explanatory variables. Use the pictured Excel regression output below to answer the questions. a) Write the estimated multiple regression equation. b) Should one interpret the estimated value for the intercept (yes or no)? c) Interpret the value for Standard Error under Regression Statistics.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
As a marketing manager for TriFood, you want to determine whether store Sales (# sold in one month) of TriPower bars are related to price (in cents) of TriPower bars and in-store promotional expenditures (in dollars) for TriPower bars. You conduct a multiple regression analysis with store Sales (Y) as the response variable, and Price (X1) and Promotion (X2) as explanatory variables. Use the pictured Excel regression output below to answer the questions.
a) Write the estimated multiple regression equation.
b) Should one interpret the estimated value for the intercept (yes or no)?
c) Interpret the value for Standard Error under Regression Statistics.
d) Interpret the value for R square.
e) State the hypotheses for assessing the statistical significance of the overall regression equation.
f) Interpret the estimated coefficient for price.
g) An external consultant to TriFoods believes that for every $1 increase in promotional expenditures, sales will increase by 4.7 units. Test the consultant's hypothesis at a 5% significance level using both approaches (tcalc vs tcrit and p-value vs a).
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