The Following Is Part of the Results of a Regression $\alpha$

question 21

Essay

The following is part of the results of a regression analysis involving sales (Y in millions of dollars), advertising expenditures (X₁ in thousands of dollars), and number of salespeople (X₂) for a corporation. The regression was performed on a sample of 10 observations.
a.If the company uses $40,000 in advertisement and has 30 salespersons, what are the expected sales? Give your answer in dollars.
b.At $\alpha$ = 0.05, test for the significance of the coefficient of advertising.
c.At $\alpha$ = 0.05, test for the significance of the coefficient of the number of salespeople.

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Definitions:

Major Television Networks

Large national or international broadcasting organizations that distribute television content across a wide geographic area.

Product Placement

An advertising technique in which a company promotes its products through appearances in movies or on television shows or other media.

Advertisement

A marketing communication intended to inform, persuade, or remind consumers about a product or service, typically paid for and disseminated through various media channels.

Radio Advertising

A marketing strategy that uses radio stations to broadcast commercial messages to targeted audiences, leveraging the auditory medium to extensively reach listeners.