Use the Following Information for Problems
Sales Figures (Number $1 \mathrm {~s}$

question 14

Essay

Use the following information for problems
Sales figures (number of units), selling price and amount spent on advertising (as a percentage of total advertising expenditure in the previous quarter) for the popular Sony Bravia Television were obtained for last quarter from a sample of 30 different stores. The results of a multiple regression are presented below. Dependent Variable $1 \mathrm {~s}$ Sales
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { sE Coef } & \text { T } & \text { P } \\ \text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \\ \text { Price } & = 0.03055 & 0.01005 & - 3.04 & 0.005 \\ \text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000 \end{array}$
$$S = 10.6075 \quad R - S q = 84.4 \leqslant \quad R - S q ( a d j ) = 83.3 \div \frac { 7 } { 6 }$$
Analyaia of Variance
$\begin{array} { l r r r } \text { Source } & \text { DF } & \text { SS } & \text { MS } \\ \text { Regresgion } & 2 & 16477.3 & 8238.7 \\ \text { Residual Error } & 27 & 3038.0 & 112.5 \\ \text { Total } & 29 & 19515.4 & \end{array}$


-How much of the variability in Sales is explained by the regression equation?

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Definitions:

Compensatory Decision-making

A decision-making process where individuals make choices by weighing the pros and cons of different options to compensate for weaker attributes by stronger ones.

Functional Fixedness

A cognitive bias that limits a person to use an object only in the way it is traditionally used, ignoring other possible uses.

Noncompensatory Modeling

A decision-making process where options are evaluated based on whether they meet predetermined criteria, without considering trade-offs between characteristics.

Insight

A sudden understanding or realization of a problem's solution, often coming unexpectedly after a period of contemplation or seeming like a spontaneous revelation.