Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo 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 1 2 3 4 5 6 7 8 9 10 11 12 UNIT SALES (THOUSANDS) 375 675 875 1,296 1,148 1.175 875 1,106 972 1,239 874 805 PRICE $/UNIT y bar = 279 220 217 206 220 194 221 203 226 217 221 248 ADVERTISING ($000) 616 830 Forecasted sales 1.106 1,403 1,204 1,296 874 1,106 695 874 695 a. Perform a regression analysis based on these data using Excel. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) 695 + Price c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $275 per unit and the amount spent on advertising (in thousands) was $875. (Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places.) advertising thousand units

Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo 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 1 2 3 4 5 6 7 8 9 10 11 12 UNIT SALES (THOUSANDS) 375 675 875 1,296 1,148 1.175 875 1,106 972 1,239 874 805 PRICE $/UNIT y bar = 279 220 217 206 220 194 221 203 226 217 221 248 ADVERTISING ($000) 616 830 Forecasted sales 1.106 1,403 1,204 1,296 874 1,106 695 874 695 a. Perform a regression analysis based on these data using Excel. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) 695 + Price c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $275 per unit and the amount spent on advertising (in thousands) was $875. (Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places.) advertising thousand units

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

Nn. 117.

Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo 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 1 2 3 4 5 6 7 8 9 10 11 12 UNIT SALES (THOUSANDS) 375 675 875 1,296 1,148 1,175 875 1,106 972 1,239 874 805 PRICE $/UNIT y bar = 279 220 217 206 220 194 221 203 226 217 221 248 ADVERTISING ($000) 616 Forecasted sales 830 1,106 1,403 1,204 1,296 874 1,106 695 874 695 a. Perform a regression analysis based on these data using Excel. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) 695 + Price c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $275 per unit and the amount spent on advertising (in thousands) was $875. (Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places.) advertising thousand units
Transcribed Image Text:Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo 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 1 2 3 4 5 6 7 8 9 10 11 12 UNIT SALES (THOUSANDS) 375 675 875 1,296 1,148 1,175 875 1,106 972 1,239 874 805 PRICE $/UNIT y bar = 279 220 217 206 220 194 221 203 226 217 221 248 ADVERTISING ($000) 616 Forecasted sales 830 1,106 1,403 1,204 1,296 874 1,106 695 874 695 a. Perform a regression analysis based on these data using Excel. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) 695 + Price c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $275 per unit and the amount spent on advertising (in thousands) was $875. (Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places.) advertising thousand units
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 13 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS