Question
An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch. Sales (units) Price
An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch.
Sales (units) | Price ($) | Advertising ($) |
500 | 100 | 50 |
480 | 120 | 40 |
485 | 110 | 45 |
510 | 103 | 55 |
490 | 108 | 40 |
488 | 109 | 30 |
496 | 106 | 45 |
a. Should this company use both price and promotion dollars, or just one of them only, to determine the sales? Perform data analysis and explain.
b. Use the model you determined (multiple regression) to predict sales if price is set at $125 and advertising is $55.
c. Then compare the forecast in (b) above with the forecast you would have made using each independent variable separately (alone).
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Statistics For Business And Economics
Authors: Paul Newbold, William Carlson, Betty Thorne
8th Edition
0132745658, 978-0132745659
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