A Soft Drink Manufacturer Has Developed a Regression Model Relating $\alpha$

question 69

Essay

A soft drink manufacturer has developed a regression model relating sales (y in $10,000) with four independent variables. The four independent variables are price per unit (x₁, in dollars), competitor's price (x₂, in dollars), advertising (x₃, in $1000) and type of container used (x₄; 1 = Cans and 0 = Bottles). Part of the regression results are shown below. (Assume n = 25)
a.If the manufacturer uses can containers and if his price is $1.25, his advertising expenditure is $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 = 0.05.
e.Test to see if there is a significant relationship between sales and competitor's price. Let $\alpha$ = 0.05.