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Use the following information to answer questions Q19 - Q21 For 30 straight weeks, you have observed the sales (in number of units sold) of
Use the following information to answer questions Q19 - Q21 For 30 straight weeks, you have observed the sales (in number of units sold) of canned tomatoes at Mr. D's Supermarket. Each week you keep track of the following three promotion activities: 1. Was a promotional notice for canned tomatoes placed in all shopping carts? Related variable: Cart. 2. Was a coupon for canned tomatoes given to each customer? Related variables Coupon. 3. Was a price reduction (none. 1. or 2 cents off) given? Related dummy variables: PriceRed1 (1 cent off) and PriceRed2 (2 cents off) Conducting a regression using Sales as the dependent variable. and Cart. Coupon. PriceRed1 and PriceRed2 as the independent variables, you get the following output: Regression Statistics Multiple R 0.942 A Square 0.8:87 Adjusted R Square 0.822 Standard Error 5.326 Observations DE ANDVA SS MS STMANGANCO F Regression 1554.333 388.583 48.919 0,000 Residual 25 198.583 7.943 Total 1752.917 Coofficials Standard Error Stat P-valug Intercept 10.0 3.438 4.217 1.004 Cart 20.0 3,075 6.558 D.000 Coupon 10 3.233 -0.379 0.716 PriceRed1 10.0 3.166 3.150 0.019 PriceRed2 11.0 3.792 3 385 0,012 How much variance in Sales has been explained by this regression? Select one: O a. 94.2% O b. 88.7% O C 82.2% O d. 5.326 Do we have evidence to believe that giving a coupon to each customer has a positive effect in generating sales? Select one: O a. Yes O b. No Before doing any promotion activities, the marginal profit of one unit of canned tomatoes is $0.10. In a particular week if you decide not to do Cart or Coupon promotions AND would like to maximize your profit, what should you do on price reduction? Select one: O a. No price reduction O b. Reduce 1 cent in price O c. Reduce 2 cent in price d. Reduce 3 cent in price
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