Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

E Homework: HW CH25 Question 8, 25.1.49-T HW Score: 63.63%, 5.09 of 8 points Part 2 of 5 Points: 0.25 of 1 Save The data

image text in transcribedimage text in transcribed
E Homework: HW CH25 Question 8, 25.1.49-T HW Score: 63.63%, 5.09 of 8 points Part 2 of 5 Points: 0.25 of 1 Save The data in the accompanying data table describe spending by a pharmaceutical company for promoting a drug over 25 consecutive weeks in two cities (city A and city B). The column Market Share is sales of this product divided by total sales for such drugs in each city. The column Detail Voice is the ratio of detailing for this product to the amount of detailing for all such drugs in each city. Detailing counts the number of promotional visits made by representatives of the company to doctors' offices. Complete parts (a) through (c). Click the icon to view the data table of market share and detail voice. (a) A hasty analyst fit the regression of Market Share on Detail Voice with the data from both locations combined. The analyst found a statistically significant slope for Detail Voice, estimated larger than 1. (This finding implies that a 1% increase in the share of detailing would get on average 1% more of the market.) What mistake has the analyst made? Choose the correct answer below. O A. The analyst did not first change the shares into percentages. O B. The analyst does not have enough data values from each city to combine them. C. By fitting one line to the two cities, instead of within each city, the slope is artificially elevated by the higher sales in city A. (b) Propose an alternative model, and evaluate whether your alternative model meets the conditions of the MRM so that you can do confidence intervals. In the alternative model let the variable City denote the dummy variable (1 if city A, 0 if city B), and let City x Detail denote the interaction term. Select the correct choice below and, if necessary, fill in the answer boxes to complete your choice. A. Estimated Market Share = + Detail Voice + City (Round to three decimal places as needed.) B. Estimated Market Share = + Detail Voice + City + City x Detail (Round to three decimal places as needed.) O C. The data violate at least one condition of the MRM.X Data table E....... Full data set Dummy Dummy Detail Voice Market Share (City A = 1) Detail Voice Market Share (City A = 1) 0.049 0.230 0.031 0.118 0.137 0.246 0.072 0.134 0.044 0.212 0.051 0.116 0.109 0.219 0.118 0.139 0.093 0.216 0.081 0.155 0.031 0.206 0.040 0.134 0.093 0.248 0.041 0.119 0.069 0.233 0.043 0.113 0.076 0.225 0.061 0.134 0.085 0.218 0.062 0.144 0.111 0.233 0.065 0.138 0.034 0. 198 0.072 0.140 0.072 0.238 0.072 0.136 o o o o o o o o o o o o o o o o o o o o o o O O C 0.074 0.227 0.039 0.136 0.094 0.204 0.044 0.117 0.099 0.246 0.082 0.136 0.098 0.244 0.085 0.148 0.088 0.211 0.085 0.133 0.148 0.228 0.073 0.139 0.046 0.207 0.080 0.131 0.096 0.226 0.081 0.134 0.093 0.206 0.082 0.126 0.121 0.226 0.043 0.120 0.137 0.229 0.069 0.144 0.064 0.197 0.079 0.143

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Precalculus

Authors: Michael Sullivan

9th edition

978-0321716835

Students also viewed these Mathematics questions