Selling Price and Percent of Advertising Budget Spent Were Entered

question 9

Multiple Choice

Selling price and percent of advertising budget spent were entered into a multiple regression to determine what affects flat panel LCD TV sales.Using the output below, estimate 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. Response Variable is Sales
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \\ \text { Price } & - 0.03055 & 0.01005 & - 3.04 & 0.005 \\ \text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000 \end{array}$
$$S = 10.6075 \quad R - S q = 84.4 \frac { q } { 8 } \quad R - S q ( a d j ) = 83.3 \text { 궁 }$$

• 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:

Observations

Specific instances of data collected or noticed during an experiment or study.

Quadratic Model

A statistical model used to describe a relationship between a response variable and one or more predictor variables where the relationship is parabolic.

Interaction Term

An additional term in a statistical model that represents the effect on the response variable of combining two or more variables.

SSE

Sum of Squared Errors, a measure of the discrepancy between the data and an estimation model.