Multiple Regression

question 17

Essay

Multiple Regression. Kitchen Products, Ltd., is a regional distributor of Regal Bread Making Machine. The company wishes to assess the relative importance of price reductions versus an increase in personal selling efforts as means for enhancing product promotion. To this end, the company recently used a regression analysis approach to study the following monthly unit sales, price, and personal selling expense information for the Bozeman, Montana market:

As a first step in the analysis, the company ran simple regressions of unit sales on each of the potentially important independent variables of price and personal selling expenses:
The first simple regression equation is:
SALES = 371 - 2.59 PRICE


The multiple regression equation is:
SALES = 195 - 4.33 PRICE + 0.231 SELLEXP

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Definitions:

Profitable Growth

An increase in revenue that leads to enhanced profitability, reflecting both expansion and efficient operations.

Transnational Strategy

A business strategy that involves operating in various countries around the world, recognizing both global efficiency and local responsiveness.

Locally Responsive

An approach or strategy where a company adjusts its products, services, and practices to better align with local buyer preferences and market conditions.

Knowledge Transfer

The process through which skills, knowledge, technologies, or methodologies are passed from one individual or organization to another.