Interpret Multiple Regression Output $\text {Dependent Variable is Sales}$ $$S = 10.6075 \quad R - S q = 84.4 \% \quad R - S q ( a d j ) = 83.3 \%$$

question 3

Multiple Choice

Interpret multiple regression output.
-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. Output is shown
Below. Using the estimated multiple regression model, the number of units sold on
Average at a store that sells the Sony Bravia for $2199 and spends 10% of its advertising
Budget on the product is $\text {Dependent Variable is Sales}$
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \\ \text { Price } & - 0.03055 & 0.01005 & - 3.04 & 0.005 \\ \text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000 \end{array}$
$$S = 10.6075 \quad R - S q = 84.4 \% \quad R - S q ( a d j ) = 83.3 \%$$

• A) 53.94 units
• B) 120 units
• C) 66.54 units
• D) 90.34 units
• E) None of the above.

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Definitions:

Interest Rate

The amount charged on top of the principal by lenders to borrowers, usually expressed as an annual percentage of the loan.

Interest Rate

The interest rate is the percentage of the principal charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.

Years From Now

A temporal reference indicating a certain amount of time in the future from the current point.

Real Wages

Nominal wages corrected for inflation.