Interpret Multiple Regression Coefficients A) While Price Negatively Affects the Number of Sony Bravia

question 5

Multiple Choice

Interpret multiple regression coefficients.
-What affects flat panel LCD TV sales? Flat panel LCD TV's are sold through a
Variety of outlets. Sales figures (number of units) for the popular Sony Bravia were
Obtained for last quarter from a sample of 30 different stores. Also collected were data
On the selling price and amount spent on advertising the Sony Bravia (as a percentage of
Total advertising expenditure in the previous quarter) at each store. Based on the results
Shown below, the correct interpretation of the regression coefficient for Advertising is $$\begin{array}{l}\text { Dependent Variable is Sales }\\\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\\text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \\\text { Price } & - 0.03055 & 0.01005 & - 3.04 & 0.005 \\\text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000\end{array}\end{array}$$

• A) While price negatively affects the number of Sony Bravia LCD TV's sold, an increase in the amount of money spent on advertising will result in at least 3 additional TV's sold.
• B) At a given price, increasing the amount spent on advertising the Sony Bravia over the previous quarter will increase sales by 3.0926 units, on average.
• C) A one percent increase in the amount spent on advertising the Sony Bravia over the previous quarter will increase sales by 3.0926 units, on average.
• D) At a given price, a one percent increase in the amount spent on advertising the Sony Bravia over the previous quarter is associated with an increase in sales of 3.0926 units, on
• Average.
• E) None of the above.

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Definitions:

Glucose

A primary sugar important for fueling biological processes in living organisms and forming part of many carbs.

Liver

A vital organ found in vertebrates that performs numerous functions, including detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Gallbladder

A small, pear-shaped organ located beneath the liver, storing and concentrating bile produced by the liver before releasing it into the small intestine.

Glycogen

A multi-branched polysaccharide of glucose that serves as a form of energy storage in animals, fungi, and bacteria.