A Microcomputer Manufacturer Has Developed a Regression Model Relating His $\alpha$

question 48

Essay

A microcomputer manufacturer has developed a regression model relating his sales (Y in $10,000s) with three independent variables. The three independent variables are price per unit (Price in $100s), advertising (ADV in $1,000s) and the number of product lines (Lines). 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.If the manufacturer has 10 product lines, advertising of $40,000, and the price per unit is $3,000, what is your estimate of their sales? Give your answer in dollars.
c.Compute the coefficient of determination and fully interpret its meaning.
d.At $\alpha$ = 0.05, test to see if there is a significant relationship between sales and unit price.
e.At $\alpha$ = 0.05, test to see if there is a significant relationship between sales and the number of product lines.
f. Is the regression model significant? (Perform an F test.)
g. Fully interpret the meaning of the regression (coefficient of price) per unit that is, the slope for the price per unit.
h. What has been the sample size for this analysis?

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Definitions:

Precedence

The rule used to clarify which operations in an expression are performed first when multiple operations occur.

Switch Statement

A control statement in programming used to perform different actions based on different conditions, testing a variable against a list of values.

Double

A data type in programming that is used to represent decimal numbers with double precision floating-point format.

OR Operator

It is a logical operator used in programming languages to combine two or more conditions. It returns true if at least one condition is true.