Answered step by step
Verified Expert Solution
Link Copied!

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 computer

Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of computer 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:

YEAR UNIT SALES (THOUSANDS) PRICE $ PER UNIT ADVERTISING ($000)
1 400 280 600
2 700 215 835
3 900 211 1,100
4 1,300 210 1,400
5 1,150 215 1,200
6 1,200 200 1,300
7 900 225 900
8 1,100 207 1,100
9 980 220 700
10 1,234 211 900
11 925 227 700
12 800 245 690

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.

c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $300 per unit and the amount spent on advertising (in thousands) was $900.

Note: Enter your answer in thousands. Do not round intermediate calculations. Round your answer to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Modern Management Concepts and Skills

Authors: Samuel C. Certo

13th edition

133059928, 978-0133059922

More Books

Students also viewed these General Management questions