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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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