A Regression Model Relating Units Sold (Y), Price (X₁), and Whether

question 40

Essay

A regression model relating units sold (y), price (x₁), and whether or not promotion for sales was used (x₂ = 1 if promotion was used and 0 if not) resulted in the following estimated equation. $\hat { y }$ = 120 - .03x₁ + .7x₂
and the following information is also provided. $n = 15 \quad s b _ { 1 } = .01 \quad s b _ { 2 } = .10$ ​
a.
Is price a significant variable? Let α = .05.
b.
Is promotion significant? Let α = .05.

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Definitions:

Spain

A country on Europe's Iberian Peninsula, known for its rich history, diverse culture, and significant global influences in exploration, art, and cuisine.

Bartolomé de Las Casas

A 16th-century Spanish historian and Dominican friar who became the first advocate for the rights of indigenous peoples in the Americas.

Destruction of the Indies

A short account written by the Spanish Dominican friar Bartolomé de las Casas in 1542, detailing the mistreatment of Indigenous peoples in the Americas by European colonizers.

Indian Enslavement

The historical practice of enslaving Indigenous peoples in the Americas, especially prominent during European colonization and expansion.