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.

---

Definitions:

Work-in-progress

Refers to the intermediate goods or partially finished goods that are in the process of production.

Raw Materials

Basic materials or substances used in the initial stages of manufacturing or production.

Finished Goods

Items that are finished being made and can now be purchased by consumers.

Work-in-progress

Refers to the materials and goods that are in the process of being manufactured but are not yet completed.