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:
$\hat { Y }$ =7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of the unit price indicates that if the unit price is
A) increased by $1 holding advertising constant), sales are expected to increase by $3
B) decreased by $1 holding advertising constant), sales are expected to decrease by $3
C) increased by $1 holding advertising constant), sales are expected to increase by $4,000
D) increased by $1 holding advertising constant), sales are expected to decrease by $3,000

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:
 $\hat { Y }$ =7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The coefficient of the unit price indicates that if the unit price is
A) increased by $1 holding advertising constant), sales are expected to increase by $3
B) decreased by $1 holding advertising constant), sales are expected to decrease by $3
C) increased by $1 holding advertising constant), sales are expected to increase by $4,000
D) increased by $1 holding advertising constant), sales are expected to decrease by $3,000

Quizplus · Accepted Answer

The coefficient of X1 is -3, indicating that for every $1 increase in unit price, sales are expected to decrease by $3,000 (since sales are in $1,000).

Exhibit 13-2 a Regression Model Between Sales Y in $1,000) Y^\hat { Y }Y^

Exhibit 13-2
a Regression Model Between Sales Y in $1,000) $\hat { Y }$