The data set given in DS 13.2.1 concerns the sales volume of a company, the price at
Question:
y = β0 + β1x1 + β2x2
with the response variable y as the sales volume and with X] as the product price and x2 as the competitor's price.
(b) Is the variable competitor's price needed in the regression model? What is the sample correlation coefficient between the competitor's price and sales? What is the sample correlation coefficient between the competitor's price and the company's price? Interpret your answers.
(c) What is the sample correlation coefficient between the company's price and its sales? What sales would you predict if the company priced its product at $10.0 next quarter?
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Step by Step Answer:
b The variable competitors price has a pvalue of 0216 and is not needed in the model The samp...View the full answer
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Related Book For 
Probability And Statistics For Engineers And Scientists
ISBN: 9780495107576
3rd Edition
Authors: Anthony Hayter
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