PLEASE REVIEW SCREEN SHOTS AND ADDRESS ALL QUESTIONS
Suppose the Sherwin-Williams Company is interested in developing a simple regression model with paint sales (Y) as the dependent variable and selling price (P) as the independent variable.
Suppose the Sherwin-williams Company is interested in developing a simple regression model with paint sales (V) as the dependent variable and selling price (P) as the independent variable. Complete the following worksheet and then use it to determine the estimated regression line. Selling Price Sales Sales Region ($/Gallon) (x 1000 Gal) I,2 2/4 2 AWNA 15 160 2,400 225 25,600 13.5 220 2,970 182.25 48,400 16.5 140 2,310 272.25 19,600 14.5 190 2,755 210.25 36,100 17 120 2,040 289 14,400 16 160 2,560 256 25,600 13 200 2,600 169 40,000 18 150 2,700 324 22,500 12 220 2,640 144 48,400 10 15.5 190 2,945 240.25 36,100 Total 151 1,750 2,312 Regression Parameters Estimations Slope (P Intercept (a) In words, for a dollar increase in the selling price, the expected sales will by gallons in a given sales region. What is the standard error of the estimate (8.)? 17.520 O 14.270 O 15.632 What is the estimate of the standard deviation of the estimated slope (at)? O 3.102 O 2.768 O 2.527 Can you reject the hypothesis (at the 0.05 level of significance) that there is no relationship (i.e., # = 0) between the variables? (Hint: to. 025,8 = 2.306) O No O YesComplete the following worksheet and then use it to calculate the coefficient of determination. y (1 - 7)2 1 15 160 176.583 2.506 225.000 2 13.5 220 200.329 641.558 2,025.000 3 16.5 140 152.837 491.199 1,225.000 4 14.5 190 184.498 90.212 225.000 5 17 120 144.922 904.686 3,025.000 16 160 160.752 203.006 225.000 7 13 200 208.245 1,105.230 625.000 18 150 129.091 2,107.636 625.000 9 12 220 224.075 2,408.356 2,025.000 10 15.5 190 168.668 40.094 225.000 Total The coefficient of determination (r) is According to the regression model, which of the following is the best estimate together with the 95 percent prediction interval of paint sales (in thousands of gallons) in a sales region where the selling price is $12.50? O 425.915 = 2(17.520) O 425.915 = 2(3.102) O 216.165 = 2(17.520) O 216.165 = 2(3.102) What is the price elasticity of demand at a selling price of $12.50? O -0.58 O -0.06 O -0.92
