Most supermarkets use scanners at the checkout counters. The data collected this way can be used to evaluate the effect of price and store's promotional activities on the sales of any product. The promotions at a store change weekly, and are mainly of two types: flyers distributed outside the store and through newspapers (which may or may not include that particular product), and in-store displays at the end of an aisle that call the customers' attention to the product. Weekly data was collected on a particular beverage brand, including sales (in number of units), price (in dollars), flyer (1 if product appeared that week, 0 if it didn't) and display (1 if a special display of the product was used that week, 0 if it wasn't). As a preliminary analysis, a simple linear regression model was done. The fitted regression equation was: SALES (Y)=2259−1418×PRICE(X) , (where B0=2259 & B1=−1418) The F test p-value was .000, and R2= 59.7%. Answer the following questions: 1. Which of the following is the best interpretation of the slope of the fitted regression line? Ans: [ Select from the following] a) "As the price increases by 1 dollar, "sales will decrease, on average, by 1418 units", b) As the sales increase by 1 unit, the price will increase, on average, by 2259 dollars" c) "As the price increases by 1 dollar, sales will increase, on average, by 2259 units" d) "As the sales increase by 1 unit, the price will decrease, on average, by 1418 dollars" 2. According to this model, how many units will be sold, on average, when the price of the beverage is $1.10? Ans: [ Select ] a) "3902.8" b) "3818.8" C) "1066.9" d) "699.2"
Most supermarkets use scanners at the checkout counters. The data collected this way can be used to evaluate the effect of price and store's promotional activities on the sales of any product.
The promotions at a store change weekly, and are mainly of two types: flyers distributed outside the store and through newspapers (which may or may not include that particular product), and in-store displays at the end of an aisle that call the customers' attention to the product.
Weekly data was collected on a particular beverage brand, including sales (in number of units), price (in dollars), flyer (1 if product appeared that week, 0 if it didn't) and display (1 if a special display of the product was used that week, 0 if it wasn't).
As a preliminary analysis, a simple linear regression model was done.
The fitted regression equation was: SALES (Y)=2259−1418×PRICE(X) , (where B0=2259 & B1=−1418)
The F test p-value was .000, and R2= 59.7%.
Answer the following questions:
1. Which of the following is the best interpretation of the slope of the fitted regression line?
Ans: [ Select from the following]
a) "As the price increases by 1 dollar, "sales will decrease, on average, by 1418 units",
b) As the sales increase by 1 unit, the price will increase, on average, by 2259 dollars"
c) "As the price increases by 1 dollar, sales will increase, on average, by 2259 units"
d) "As the sales increase by 1 unit, the price will decrease, on average, by 1418 dollars"
2. According to this model, how many units will be sold, on average, when the price of the beverage is $1.10?
Ans: [ Select ]
a) "3902.8"
b) "3818.8"
C) "1066.9"
d) "699.2"
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