Sherri Cola Company Has Developed a Regression Model Relating Its $\alpha$

question 55

Essay

Sherri Cola Company has developed a regression model relating its sales (Y in $10,000s) with four independent variables. The four independent variables are price per unit (PRICE, in dollars), competitor's price (COMPRICE, in dollars), advertising (ADV, in $1,000s) and type of container used (CONTAIN; 1 = Cans and 0 = Bottles). Part of the regression results is shown below. (Assume n = 25)

a.If the manufacturer uses can containers, his price is $1.25, advertising $200,000, and his competitor's price is $1.50, what is your estimate of his sales? Give your answer in dollars.
b.Test to see if there is a significant relationship between sales and unit price. Let $\alpha$ = 0.05.
c.Test to see if there is a significant relationship between sales and advertising. Let $\alpha$ = 0.05.
d.Is the type of container a significant variable? Let $\alpha$ = 0.05.
e.Test to see if there is a significant relationship between sales and competitor's price. Let $\alpha$ = 0.05.

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Definitions:

Selective Attention

The process of focusing on a particular object in the environment for a certain period while ignoring irrelevant data that is simultaneously occurring.

Structuralism

An approach in psychology and other social sciences focusing on analyzing the structure of the human mind and its perceptions, rather than its content.

Behaviorism

Behaviorism is a theory of learning based on the idea that all behaviors are acquired through conditioning and that environmental interactions shape behavior, largely ignoring mental states or innateness.

Developmental Psychologists

Professionals who study the growth and development of the human mind and behavior across the lifespan.