Alan Bissell, a market analyst for City Sound Online Mart, is analyzing sales from heavy metal song downloads.Alan's dependent variable is annual heavy metal song download sales (in $1,000,000's), and his independent variables are website visitors (in 1,000's)and type of download format requested (0 = MP3, 1 = other).Regression analysis of the data yielded the following tables. $$\begin{array} { | c | c | c | c | c | }
\hline & \text { Coefficients } & \text { Standard Error } & t \text { Statistic } & p \text {-value } \
\hline \text { Iritercept } & 1.7 & 0.384212 & 4.424638 & 0.00166 \
\hline x _ { 1 } \text { (websitevisitors) } & 0.04 & 0.014029 & 2.851146 & 0.019054 \
\hline x _ { 2 } \text { (download format) } & - 1.5666667 & 0.20518 & - 7.63558 & 3.21 E - 05 \
\hline
\end{array}$$ For 'other' download formats with 10,000 website visitors, Alan's model predicts annual sales of heavy metal song downloads of ________________.
A)$2,100,000
B)$524,507
C)$533,333
D)$729,683
E)$210,000

Question

Alan Bissell, a market analyst for City Sound Online Mart, is analyzing sales from heavy metal song downloads.Alan's dependent variable is annual heavy metal song download sales (in $1,000,000's), and his independent variables are website visitors (in 1,000's)and type of download format requested (0 = MP3, 1 = other).Regression analysis of the data yielded the following tables. $$\begin{array} { | c | c | c | c | c | } 
\hline & \text { Coefficients } & \text { Standard Error } & t \text { Statistic } & p \text {-value } \
\hline \text { Iritercept } & 1.7 & 0.384212 & 4.424638 & 0.00166 \
\hline x _ { 1 } \text { (websitevisitors) } & 0.04 & 0.014029 & 2.851146 & 0.019054 \
\hline x _ { 2 } \text { (download format) } & - 1.5666667 & 0.20518 & - 7.63558 & 3.21 E - 05 \
\hline
\end{array}$$ For 'other' download formats with 10,000 website visitors, Alan's model predicts annual sales of heavy metal song downloads of ________________.
A)$2,100,000
B)$524,507
C)$533,333
D)$729,683
E)$210,000

Quizplus · Accepted Answer

The model's equation based on the given coefficients is: Sales = 1.7 + 0.04(website visitors) - 1.5666667(download format). For 'other' download formats (download format = 1) with 10,000 website visitors, the prediction is: Sales = 1.7 + 0.04(10,000) - 1.5666667 = 1.7 + 400 - 1.5666667 = 400.1333333. Since the sales are in $1,000,000's, the prediction is $533,333.

Alan Bissell, a Market Analyst for City Sound Online Mart