Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of
Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow: UNIT SALES PRICE $ PER ADVERTISING YEAR (THOUSANDS) UNIT ($000) 1 398 298 585 2 700 218 827 3 898 208 1,116 1,298 216 1,411 1,153 218 1,213 1,188 207 1,290 898 216 905 8 1,116 204 1,116 9 988 218 796 10 1,332 298 905 11 924 221 706 12 818 238 680 a. Perform a regression analysis based on these data using Excel. Note: Negative values should be Indicated by a minus sign. Round your answers to 4 decimal places. y bar = Price + advertising c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $298 per unit and the amount spent on advertising (in thousands) was $898. Note: Enter your answer In thousands. Round your Intermediate calculations and final answer to 2 decimal places. Forecasted sales thousand units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started