Interpret Multiple Regression Coefficients A) Increasing the Price of the Sony Bravia by $100

question 14

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 Price 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) Increasing the price of the Sony Bravia by $100 will result in at least 3 fewer TV's sold.
• B) For a given amount spent on advertising, a $100 increase in price of the Sony Bravia is associated with a decrease in sales of 3.055 units, on average.
• C) Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by 3.055 units.
• D) Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by .03%.
• E) None of the above.

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