Question
Managerial Economics Module 2Demand Theory and Estimation Activity 4Case 3 Using SPSS, MS Excel or other statistical software package, run the given data and answer
Managerial Economics
Module 2Demand Theory and Estimation
Activity 4Case 3
Using SPSS, MS Excel or other statistical software package, run the given data and answer the following in MS Word.
Assume that Electronix, Inc., a small startup company that distributes a particular business machine, has the following monthly data on unit sales (Q), price (P), advertising expenditures (AD), and personal selling expenditures (PSE) over the past year.
If a linear relation between unit sales, price, advertising, and personal selling expenditures is hypothesized, the regression equation takes the following form:
where is the number of units sold, P is the average price per month, D is advertising expenditures, PSE is personal selling expenditures, and is a random disturbance term - all measured on a monthly basis over the past year.
A.Present the computer results of the regression.
Show all results in two decimal places.
MonthUnits Sales Advertising Personal Selling
Price ($) Expenditures ($) Expenditures ($)
January2,5003,80026,80043,000
February2,2503,70023,50039,000
March1,7503,60017,40035,000
April1,5003,50015,30034,000
May1,0003,20010,40026,000
June2,5003,20018,40041,000
July2,7503,20028,20040,000
August1,7503,00017,40033,000
September1,2502,90012,30026,000
October3,0002,70029,80045,000
November2,0002,70020,30032,000
December2,0002,60019,80034,000
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