The following is part of the results of a regression analysis involving sales (y in millions of dollars), advertising expenditures (x1 in thousands of dollars), and number of salespeople (x2) for a corporation. The regression was performed on a sample of 10 observations.
Coefficients
Standard Error
Constant-11.340
20.412
x10.798
0.332
x20.141
0.278
?
a.Write the regression equation.b.Interpret the coefficients of the estimated regression equation found in Part a.c.At ? = .05, test for the significance of the coefficient of advertising.d.At ? = .05, test for the significance of the coefficient of number of salespeople.e.If the company uses $50,000 in advertisement and has 800 salespeople, what are the expected sales? Give your answer in dollars.
What will be an ideal response?
?
| a. |  = -11.34 + .798x1 + .141x2 |
| b. | As advertising increases by 1 unit ($1000) (holding the number of salespeople constant), sales are expected to increase by .798 units ($798,000). As the number of salespeople increases by 1 (holding advertising constant), sales are expected to increase by $141,000. |
| c. | t = 2.40; p-value is between .02 and .05; reject H0; coefficient of advertising is significant. |
| d. | t = .51; p-value > .4; do not reject H0; no evidence that the coefficient of number of salespeople is significant. |
| e. | $141,360,000 |
Business
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