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.

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Definitions:

Contact Information

Details used to communicate with an individual or organization, such as phone number, address, or email.

Predictive Modeling

The use of statistical techniques to forecast future events or behaviors by analyzing current and historical data.

Sophisticated Algorithms

Complex and advanced sets of rules or processes designed to solve problems or make decisions in various applications, such as computer science or finance.

Data Analysis

The process of inspecting, cleansing, transforming, and modeling data with the goal of discovering useful information and supporting decision making.