Your boss has hiredMarketWareto conduct a study of how price, price promotions, star sponsorships, and social media presence impact bicycle sales.

MarketWareprocured 2019 secondary data on 15 popular bicycle brands from around the world and then modeled bicycle sales as a function price, price promotion (price currently discounted = no or yes), star sponsorships (sponsoring a world-class cyclist = no or yes), and social media presence or SMP (a composite of multiple variables, the most important/weighted of which is ad impressions (number of consumer exposures to each brand's online ads)).

Based on the results below, and ignoring the obvious and general negative price effects,MarketWarerecommends thatyour boss(1) engage in more price promotions (whichyour bossrarely does), and (2) increase its social media presence (currently slightly below market).

Below are the multiple regression results and correlations, in which (1)minus signs may be in a gray font (apologies, a Canvas equations default), and (2) a * means a regression coefficient'spis below .05.

a. Please explain to your boss what ap-value means (the probability of . . .) and how/why social-media-presence'sp-value supports or refutesMarketWare'srecommendation thatyour bossincreases social media presence.

b. EvaluateMarketware'simplicit recommendation thatyour boss notengage in a star sponsorship. Specifically, what are the empirical (study-based) reasons for and/or againstyour bosssponsoring a star cyclist?

Sales = .06?.27(Price)* + .12(Price-Promotions)* + .06(Star-Adoptions) + .19(SMP)*

* =p

?

The Minus Sign Price Star May be in Gray Sales Price Promotions Sponsorships SMP Sales 1.0 -.32 Price p