Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables. Y=a+B₂A+BpP+ € Now suppose that the estimate of the model produces following results: a = 344.585, b = 0.102 bp = -13.397, 8 = 0.155, 8bp = 4.312, R² = 0.813, and F-statistic = 11.361. Note that the sample consists of 10 observations. According to the estimated model, holding all else constant, a $1,000 increase in promotional expenditures gallons. Similarly, a $1 increase in the selling price sales by approximately. sales by approximately gallons. Which of the independent variables (if any) appears to be statistically significant (at the 0.05 level) in explaining paint sales? Check all that apply. Selling price (P) Promotional expenditures (A) What proportion of the total variation in sales is explained by the regression equation? O 0.155 0.813 ○ 0.102 The given F-value shows that you reject the null hypothesis that neither one of the independent variables explain a significant (at the 0.05 level) proportion of the variation in income. Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are $100,000 and the selling price is $12.50? 187.322 O 212.772 O 166.922 When promotional expenditures are $80,000 and the selling price is $12.50, the point price elasticity is elasticity is and the point promotional price
Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables. Y=a+B₂A+BpP+ € Now suppose that the estimate of the model produces following results: a = 344.585, b = 0.102 bp = -13.397, 8 = 0.155, 8bp = 4.312, R² = 0.813, and F-statistic = 11.361. Note that the sample consists of 10 observations. According to the estimated model, holding all else constant, a $1,000 increase in promotional expenditures gallons. Similarly, a $1 increase in the selling price sales by approximately. sales by approximately gallons. Which of the independent variables (if any) appears to be statistically significant (at the 0.05 level) in explaining paint sales? Check all that apply. Selling price (P) Promotional expenditures (A) What proportion of the total variation in sales is explained by the regression equation? O 0.155 0.813 ○ 0.102 The given F-value shows that you reject the null hypothesis that neither one of the independent variables explain a significant (at the 0.05 level) proportion of the variation in income. Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are $100,000 and the selling price is $12.50? 187.322 O 212.772 O 166.922 When promotional expenditures are $80,000 and the selling price is $12.50, the point price elasticity is elasticity is and the point promotional price
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 2E
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Transcribed Image Text:Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent
variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables.
Y=a+B₂A+BpP+ €
Now suppose that the estimate of the model produces following results: a = 344.585, b = 0.102 bp = -13.397, 8 = 0.155, 8bp = 4.312,
R² = 0.813, and F-statistic = 11.361. Note that the sample consists of 10 observations.
According to the estimated model, holding all else constant, a $1,000 increase in promotional expenditures
gallons. Similarly, a $1 increase in the selling price
sales by approximately.
sales by approximately
gallons.
Which of the independent variables (if any) appears to be statistically significant (at the 0.05 level) in explaining paint sales? Check all that apply.
Selling price (P)
Promotional expenditures (A)
What proportion of the total variation in sales is explained by the regression equation?
O 0.155
0.813
○ 0.102
The given F-value shows that you
reject the null hypothesis that neither one of the independent variables explain a significant (at the
0.05 level) proportion of the variation in income.
Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are
$100,000 and the selling price is $12.50?
187.322
O 212.772
O 166.922
When promotional expenditures are $80,000 and the selling price is $12.50, the point price elasticity is
elasticity is
and the point promotional price
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