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In order to determine whether or not the sales volume of a company (Y in millions of dollars) is related to advertising expenditures (X1 in millions of dollars) and the number of salespeople (X2), data were gathered for 10 years. Part of the regression results is shown below.
a. Use the above results and write the regression equation that can be used to predict sales.
b. Estimate the sales volume for an advertising expenditure of 3.5 million dollars and 45 salespeople. Give your answer in dollars.
c. At = 0.05, test to determine if the fitted equation developed in Part a represents a significant relationship between the independent variables and the dependent variable.d. At = 0.05, test to see if 1 is significantly different from zero.
e. Determine the multiple coefficient of determination.
f. Compute the adjusted coefficient of determination.
Sales Prices
The set amount of money that a product or service is offered for sale to customers.
Bank Reconciliation
The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure consistency and accuracy in financial records.
Journal Entries
The method by which financial transactions are recorded in a company's accounting records, noting the accounts affected and the amounts involved.
Debit Cash
An accounting entry that increases the cash balance in the company's ledger.
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