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Vesper Auto Wash is reviewing its sales for the last 9 months. Executives at Vesper are in disagreement over the driving force behind sales of
Vesper Auto Wash is reviewing its sales for the last 9 months. Executives at Vesper are in disagreement over the driving force behind sales of their basic carwash package. Some argue it is the price of a carwash, while others argue it is the number of ads on the radio. Executives decide to build a regression model that can estimate sales based on both the price of a carwash and the number of ads. The data for the monthly sales of basic carwashes, the corresponding price, and the number of monthly radio ads are presented below. Sales Price Ads 7,006 10.7 61 7,234 10.46 73 7,692 10.21 84 7,486 10.51 78 7,526 10.26 82 8,012 10.12 96 8,121 10.01 104 7,924 10.11 100 8,131 9.99 109 Based on the regression equation, if they drop the price for the basic carwash by $0.20, what would be expected change in sales? (Note: You may use Excel's Data Analysis add-in to perform the regression analysis.)
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