Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with this Suppose the Sherwin-williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the

I need help with this

image text in transcribedimage text in transcribed
Suppose the Sherwin-williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables. YatBA+BP+E Now suppose that the estimate of the model produces following results: a = 344.585, b, 0.11, b, - -13.397. she = 0.173, spy = 4.421. R2 = 0.722, and F-statistic = 11.361. Note that the sample consists of 10 observations. According to the estimated model, holding all else constant, a $1,000 increase in promotional expenditures sales by approximately gallons. Similarly, a $1 increase in the selling price sales by approximately gallons. Which of the independent variables (if any) appears to be statistically significant (at the 0.05 level) in explaining paint sales? Check all that apply. Promotional expenditures (A) O Selling price (P) What proportion of the total variation in sales is explained by the regression equation? O 0.11 O 0.722 O 0.173 The given F-value shows that you "reject the null hypothesis that neither one of the independent variables explain a significant (at the 0.05 level) proportion of the variation in income.According to the estimated model, holding all else constant, a $1,000 increase in promotional expenditures sales by approximately gallons. Similarly, a $1 increase in the selling price sales by approximately 7 gallons. Which of the independent variables (if any) appears to be statistically significant (at the 0.05 level) in explaining paint sales? Check all that apply. Promotional expenditures (A) Selling price (P) What proportion of the total variation in sales is explained by the regression equation? O 0.11 O 0.722 O 0.173 The given F-value shows that you reject the null hypothesis that neither one of the independent variables explain a significant (at the 0.05 level) proportion of the variation in income. Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are $120,DO0and the selling price is $11.50? O 203.719 O 227.133 O 177.319 When promotional expenditures are $80,000 and the selling price is $11.50, the point price elasticity is and the point promotional price elasticity is

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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Economics questions