When a Regression Model Was Developed Relating Sales (Y) of a Company

question 59

Essay

When a regression model was developed relating sales (y) of a company to its product's price (x₁), the SSE was determined to be 495. A second regression model relating sales (y) to product's price (x₁) and competitor's product price (x₂) resulted in an SSE of 396. At $\alpha$ = 0.05, determine if the competitor's product's price contributed significantly to the model. The sample size for both models was 33.

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Definitions:

Sensitization

An increased response to a stimulus following repeated exposure, often used in the context of pain or drug tolerance.

Receptor Number

The total quantity of specific receptors found on the surface or within a cell, influencing the cell's sensitivity to particular molecules or drugs.

Postsynaptic Membrane

The region of a synapse that receives and responds to neurotransmitter signals from a presynaptic cell.

Transmitter Metabolism

The process by which neurotransmitters are synthesized, released, and broken down by the body.