The Following Is Part of the Results of a Regression

question 139

Essay

The following is part of the results of a regression analysis involving sales Y in millions of dollars), advertising expenditures X1 in thousands of dollars), and number of salespeople X2) for a corporation. The regression was performed on a sample of 10 observations.
$\begin{array}{lr}&\text { Coefilicient }&\text { Standard Error }\\\text { Constant } & -11.340&20.412 \\\mathrm{X}_{1} & 0.798 &0.332\\\mathrm{X}_{2} & 0.141&0.278\end{array}$
a. Write the regression equation.
b. Interpret the coefficients of the estimated regression equation found in Part a).
c. At α =0.05, test for the significance of the coefficient of advertising.
d. At α =0.05, test for the significance of the coefficient of number of salespeople.
e. If the company uses $50,000 in advertisement and has 800 salespersons, what are the expected sales? Give your answer in dollars.

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Definitions:

Operating Angles

The specific angles at which certain mechanical parts, such as driveshafts, are designed to operate efficiently.

Propeller Shaft

The mechanical component used to transmit power from an engine or motor to the propeller in a boat or aircraft.

Universal Joints

Flexible joints used in drive shafts that allow for the transmission of power between shafts that are not aligned.

Driveshaft Flexibility

The ability of a driveshaft to flex or bend without breaking, to accommodate movement and alignment changes in a vehicle's drivetrain.