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

question 106

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.Write the regression equation.
b.Interpret the coefficients of the estimated regression equation found in Part (a).
c.At $\alpha$ =0.05, test for the significance of the coefficient of advertising.
d.At $\alpha$ =0.05, test for the significance of the coefficient of number of salespeople.
e.If the company uses $50,000 in advertisement and has 800 salespersons, what are the expected sales? Give your answer in dollars.

---

Definitions:

Depreciation Expense

An accounting method of allocated the cost of a tangible or physical asset over its useful life, representing how much of the asset's value has been used up.

Total Asset Turnover

A measure assessing the productivity of a company's assets in producing sales revenue.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

This is a measure used to evaluate a company's asset efficiency by calculating the average total assets over a specific period.