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.

Understand the definition and components of the cost of goods sold.

Recognize the challenges and impediments to a global capital market.

Identify the key financial statements used by publicly traded firms.

Calculate and interpret financial ratios, including liquidity, leverage, and profitability ratios.

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Definitions:

Breakeven Price

The sales amount at which a business neither makes a profit nor incurs a loss, covering all its costs.

Generic Drug

A pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents.

Duloxetine

A medication primarily used to treat major depressive disorder, generalized anxiety disorder, fibromyalgia, and neuropathic pain.

Breakeven Price

the price level at which total costs equal total revenue, indicating no profit or loss for the business.