The Following Are Partial Results of a Regression Analysis Involving $\alpha$

question 32

Essay

The following are partial 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.
a.At $\alpha$ = 0.05, test for the significance of the coefficient of advertising.
b.If the company uses $20,000 in advertisement and has 300 salespersons, what are the expected sales? (Give your answer in dollars.)

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Definitions:

Product Promotion

Various marketing strategies and tactics used to increase awareness, interest, and sales of a product.

Monopolistically Competitive Industry

A commercial setup in which various enterprises market goods that are comparable, though not identical, granting them a measure of control within the marketplace.

Elasticity Of Demand

An indicator of the level of change in consumer demand for a product based on fluctuations in its price.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market; it occurs when total revenues are equal to total costs, including opportunity costs.