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:

Alternatives

Different options or choices available to decision-makers in various contexts.

Social Needs

Fundamental human requirements for belonging, affection, acceptance, and friendship.

Collectivist Societies

Societies that emphasize the needs and goals of the group as a whole over the needs and wishes of each individual.

Need Levels

Hierarchical stages of needs proposed by psychologists, indicating that certain basic needs must be met before individuals can focus on higher-order psychological requirements.