Question
Suppose we have data with the following variables. Monthly Sales (thousand $) Monthly Advertising budget (thousand $) Location (Domestic/International) Segment (Segment A, Segment B, Segment
Suppose we have data with the following variables.
- Monthly Sales (thousand $)
- Monthly Advertising budget (thousand $)
- Location (Domestic/International)
- Segment (Segment A, Segment B, Segment C, Segment D)
Suppose the coefficients table for the multiple linear regression model is given below.
Variable | Estimate of coefficient | p-value |
(intercept) | 70 | Less than 0.0001 |
Advertising budget | 3 | Less than 0.0001 |
Location International | 40 | Less than 0.0001 |
Segment B | 2 | 0.51 |
Segment C | -30 | Less than 0.0001 |
Segment D | 35 | Less than 0.0001 |
True or False ( or not enough information) Section:
1. When we control for advertising budget and Location, Segment B does not have an impact on the average sales: the average sales are about the same in Segment B as they are in any other segment.
2. Suppose we graphed the trend associated with this model (where advertising budget is the x-axis and sales is the y-axis). Since the coefficient for Segment C is negative, this means that the trend line for Segment C is decreasing.
3. The average monthly sales in the international location is 110 thousand dollars.
4. The average monthly sales in the international location is 40 thousand dollars.
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