Talento wants to use a regression model of how units sold of its new Tiramisu Gelato flavor respondto the price the company charges. The marketing department has collected the followingweekly data for the last 52 weeks [note the units]:Y weekly units sold in thousandsX price per pint in $The following is an excerpt of an Excel analysis of these data. Unfortunately, some of the numbersin the analysis are missing. Coefficients Standard Error t-Stat Intercept ? 183.270 ? X -143.128 ? -2.359 The marketing department has also tested its regression model for its modal price. It finds thatwhen Talento charges a price of $4 per pint, the regression model predicts units sold of 127,488.1. Complete the missing values in the analysis (specifically, those for the intercept coefficient,the test statistic or t-value for the intercept coefficient, and the standard error for the coefficienton X).2. Talento frequently charges a price of $4 for its Gelato but worries the price is too high relativeto its competition. The company pays a constant marginal cost of $3 per pint of Gelato andwants to use the regression model to estimate the profit impact of charging a lower price.Talento considers a price of $3.75. Use the regression model to predict the change in weeklyprofit from charging a price of $3.75 instead of $4.
Talento wants to use a regression model of how units sold of its new Tiramisu Gelato flavor respond
to the price the company charges. The marketing department has collected the following
weekly data for the last 52 weeks [note the units]:
Y weekly units sold in thousands
X price per pint in $
The following is an excerpt of an Excel analysis of these data. Unfortunately, some of the numbers
in the analysis are missing.
| Coefficients | Standard Error | t-Stat | |
| Intercept | ? | 183.270 | ? |
| X | -143.128 | ? | -2.359 |
The marketing department has also tested its regression model for its modal price. It finds that
when Talento charges a price of $4 per pint, the regression model predicts units sold of 127,488.
1. Complete the missing values in the analysis (specifically, those for the intercept coefficient,
the test statistic or t-value for the intercept coefficient, and the standard error for the coefficient
on X).
2. Talento frequently charges a price of $4 for its Gelato but worries the price is too high relative
to its competition. The company pays a constant marginal cost of $3 per pint of Gelato and
wants to use the regression model to estimate the profit impact of charging a lower price.
Talento considers a price of $3.75. Use the regression model to predict the change in weekly
profit from charging a price of $3.75 instead of $4.
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