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 = 2259 - 1418 price. The ANOVA F test p-value was .000, and r squared = 59.7%. At 1% level of significance ,Is price a good predictor of sales? Yes, the p-value is less than 1% Yes, the intercept is very large. No, the p-value is greater than 5% No, the slope is negative.
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 = 2259 - 1418 price. The ANOVA F test p-value was .000, and r squared = 59.7%. At 1% level of significance ,Is price a good predictor of sales?
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