Question

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel lcd tv sales. according to the output below, the calculated t-statistic to determine if amount spent on advertising is a significant independent variable in explaining sony bravia sales is dependent variable is sales predictor coef se coef t p constant 90.19 25.08 3.60 0.001 price -0.03055 0.01005 -3.04 0.005 advertising 3.0926 0.3680 8.40 0.000 select one:

a. -3.04

Answer 1

Answer = 54

Step-by-step explanation:

Predictor Coef SECoef T P

Constant 90.19 25.08 3.60 0.001

Price 0.03055 0.01005 −3.04 0.005

Advertising 3.0926 0.3680 8.40 0.000

The required multiple regression model is :

y = 90.19 - 0.03055 Price + 3.0926 Advertising

The estimated value of y for Price = 2199 and Advertising = 10 is :

y = 90.19-0.03055 x 2199+3.0926 x 10 = 53.94 ≈ 54

So , the number of units sold on average at a store that sells the Sony Bravia for​ $2199 and spends​ 10% of its advertising budget on the product is ≈ 54