In Order to Determine Whether or Not the Sales Volume

question 111

Essay

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.

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Definitions:

Owned By

Indicates possession or ownership of an asset, property, or company by an individual, group, or entity.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, providing the foundation for double-entry bookkeeping.

Supplies

Items used in the operation of a business that are consumed or are not permanent, such as stationery, cleaning products, and office supplies.

Limited Liability Company (LLC)

A company framework that merges the tax responsibilities of a partnership or sole proprietorship with the corporation's benefit of limited liability.