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The following multiple linear regression depicts the sales of Honda Corporation: S=15-0.2P+0.08TA+0.05RA Where: S: Sales (Unit); P: Price ($/Unit); TA : Television advertising ($); RA:
The following multiple linear regression depicts the sales of Honda Corporation: S=15-0.2P+0.08TA+0.05RA Where: S: Sales (Unit); P: Price ($/Unit); TA : Television advertising ($); RA: Radio advertising ($). 1. Interpret the slopes; 2. Is television advertising more effective than radio advertising? Why or why not? 3. What is the effect of a $2 increase in price, a $3 increase in TV advertising, and a $2 decrease in radio advertising on sales? 4. What is the effect of a $2 decrease in price, a $2 decrease in TV advertising, and a $4 increase in radio advertising on sales
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