Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales = B0 + B1 Population + B2 Income + E, where Sales is the sales of Strong Bones (in $1,000,000s), Population is the number of women over the age of 60 (in millions), and Income is the average income of women over the age of 60 (in $1,000s). She collects data on 32 cities across the United States and obtains the following regression results: Coefficients Standard Error t Stat p-Value Intercept Population Income 10.01 3.93 2.55 0.0231 8.19 2.20 3.72 0.0338 7.24 6.40 1.13 0.3758 a. What is the sample regression equation? Note: Enter your answers in millions rounded to 2 decimal places. Sales = Population + Income b-1. Interpret the coefficient of population. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.24 million. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million, holding income constant. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.24 million, holding income constant. b-2. Interpret the coefficient of income. O As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $8.19 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.24 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.19 million, holding population constant. ○ As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $7.24 million, holding population constant. c. Predict sales if a city has 2.0 million women over the age of 60 and their average income is $38,000. Note: Enter your answer in millions rounded to 2 decimal places. Sales =

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...
icon
Related questions
Question
100%
Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of
StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales = B0 + B1 Population + B2 Income +
E, where Sales is the sales of Strong Bones (in $1,000,000s), Population is the number of women over the age of 60 (in millions), and
Income is the average income of women over the age of 60 (in $1,000s). She collects data on 32 cities across the United States and
obtains the following regression results:
Coefficients
Standard
Error
t Stat
p-Value
Intercept
Population
Income
10.01
3.93
2.55
0.0231
8.19
2.20
3.72
0.0338
7.24
6.40
1.13
0.3758
a. What is the sample regression equation?
Note: Enter your answers in millions rounded to 2 decimal places.
Sales =
Population +
Income
b-1. Interpret the coefficient of population.
As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19
million.
As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.24
million.
As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19
million, holding income constant.
As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.24
million, holding income constant.
b-2. Interpret the coefficient of income.
O As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by
$8.19 million.
○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by
$7.24 million.
○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by
$8.19 million, holding population constant.
○ As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by
$7.24 million, holding population constant.
c. Predict sales if a city has 2.0 million women over the age of 60 and their average income is $38,000.
Note: Enter your answer in millions rounded to 2 decimal places.
Sales =
Transcribed Image Text:Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales = B0 + B1 Population + B2 Income + E, where Sales is the sales of Strong Bones (in $1,000,000s), Population is the number of women over the age of 60 (in millions), and Income is the average income of women over the age of 60 (in $1,000s). She collects data on 32 cities across the United States and obtains the following regression results: Coefficients Standard Error t Stat p-Value Intercept Population Income 10.01 3.93 2.55 0.0231 8.19 2.20 3.72 0.0338 7.24 6.40 1.13 0.3758 a. What is the sample regression equation? Note: Enter your answers in millions rounded to 2 decimal places. Sales = Population + Income b-1. Interpret the coefficient of population. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.24 million. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million, holding income constant. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.24 million, holding income constant. b-2. Interpret the coefficient of income. O As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $8.19 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.24 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.19 million, holding population constant. ○ As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $7.24 million, holding population constant. c. Predict sales if a city has 2.0 million women over the age of 60 and their average income is $38,000. Note: Enter your answer in millions rounded to 2 decimal places. Sales =
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar 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.