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 1 2 2 3 10 11 12 UNIT SALES PRICE $ PER UNIT 281 224 211 217 224 224 y bar = (THOUSANDS) 399 699 899 1,302 1,137 1,193 899 405 1,105 970 1,233 898 809 100 198 228 207 220 211 233 252 ADVERTISING ($000) 620 823 1,105 1,403 1,208 1,302 898 1,105 693 898 693 693 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. Price + advertising 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.
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 1 2 2 3 10 11 12 UNIT SALES PRICE $ PER UNIT 281 224 211 217 224 224 y bar = (THOUSANDS) 399 699 899 1,302 1,137 1,193 899 405 1,105 970 1,233 898 809 100 198 228 207 220 211 233 252 ADVERTISING ($000) 620 823 1,105 1,403 1,208 1,302 898 1,105 693 898 693 693 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. Price + advertising 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Skipped
eBook
Print
References
YEAR
1
2
3
4
5
6
7
8
9
10
11
12
UNIT SALES PRICE $ PER
(THOUSANDS)
UNIT
399
281
699
224
899
y bar =
1,302
1,137
1,193
899
1,105
970
1,233
898
809
211
217
+
224
198
228
207
220
211
233
252
ADVERTISING
($000)
620
823
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.
1,105
1,403
1,208
1,302
898
1,105.
693
898
693
693
Price
+
advertising
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.
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