Sherri Cola Company Has Developed a Regression Model Relating Its $\alpha$

question 107

Essay

Sherri Cola Company has developed a regression model relating its sales (Y in $10,000s) with four independent variables. The four independent variables are price per unit (PRICE, in dollars), competitor's price (COMPRICE, in dollars), advertising (ADV, in $1,000s) and type of container used (CONTAIN; 1 = Cans and 0 = Bottles). Part of the regression results is shown below. (Assume n = 25)
a.If the manufacturer uses can containers, his price is $1.25, advertising $200,000, and his competitor's price is $1.50, what is your estimate of his sales? Give your answer in dollars.
b.Test to see if there is a significant relationship between sales and unit price. Let $\alpha$ = 0.05.
c.Test to see if there is a significant relationship between sales and advertising. Let $\alpha$ = 0.05.
d.Is the type of container a significant variable? Let $\alpha$ = 0.05.
e.Test to see if there is a significant relationship between sales and competitor's price. Let $\alpha$ = 0.05.

---

Definitions:

Solution

A homogeneous mixture of a solid, liquid, or gaseous substance in a liquid, such as a dissolved drug in liquid form.

Vaginal Suppository

A solid medical preparation in a roughly conical or cylindrical shape, intended for insertion into the vagina to dissolve and exert its effect locally.

Semi-Fowler's

A position in which a patient is semi-upright at an angle of about 30-45 degrees, often used to promote lung expansion and ease breathing.

Applicator

A tool or device used to apply a substance or prepare a surface, often found in medical or cosmetic applications.