Exhibit 13-2
A regression model between sales (y in $1,000) , unit price (x₁ in dollars) and television advertisement (x₂ in dollars) resulted in the following function: = 7 - 3x₁ + 5x₂
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of x₂ indicates that if television advertising is increased by $1 (holding the unit price constant) , sales are expected to

Question

Exhibit 13-2
A regression model between sales (y in $1,000) , unit price (x₁ in dollars) and television advertisement (x₂ in dollars) resulted in the following function:

Exhibit 13-2 A regression model between sales (y in $1,000) , unit price (x<sub>1</sub> in dollars) and television advertisement (x<sub>2</sub> in dollars) resulted in the following function: = 7 - 3x<sub>1</sub> + 5x<sub>2</sub> For this model SSR = 3500, SSE = 1500, and the sample size is 18. -Refer to Exhibit 13-2. The coefficient of x<sub>2</sub> indicates that if television advertising is increased by $1 (holding the unit price constant) , sales are expected to A) increase by $5 B) increase by $12,000 C) increase by $5,000 D) decrease by $2,000

= 7 - 3x₁ + 5x₂
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of x₂ indicates that if television advertising is increased by $1 (holding the unit price constant) , sales are expected to

Quizplus · Accepted Answer

The coefficient of x₂ represents the change in sales for each additional dollar spent on television advertising. If the coefficient is $5,000, it means sales are expected to increase by $5,000 for each $1 increase in advertising, assuming other factors remain constant.

Exhibit 13-2 A Regression Model Between Sales (Y in $1,000), Unit Price