The Following Is Part of the Results of a Regression $\alpha$

question 85

Essay

The following is part of the results of a regression analysis involving sales (Y in millions of dollars),advertising expenditures (X₁ in thousands of dollars),and number of salespeople (X₂)for a corporation.The regression was performed on a sample of 10 observations.

a.If the company uses $40,000 in advertisement and has 30 salespersons,what are the expected sales? Give your answer in dollars.
b.At $\alpha$ = 0.05,test for the significance of the coefficient of advertising.
c.At $\alpha$ = 0.05,test for the significance of the coefficient of the number of salespeople.

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Definitions:

World Market

An international marketplace where goods, services, currencies, and other commodities are exchanged across borders.

Budget Line

A graphical depiction of all possible combinations of two goods that can be purchased with a given income and prices, reflecting the trade-offs and choices available.

Utility Function

A mathematical representation that describes how a consumer ranks different bundles of goods according to the level of satisfaction obtained from them.

Consumption

The process by which individuals or households use goods and services to fulfill their needs and wants.