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Selling Price and Percent of Advertising Budget Spent Were Entered

Question 16

Multiple Choice

Selling price and percent of advertising budget spent were entered into a multiple regression to determine what affects flat panel LCD TV sales.Using the output shown below, which of
The following statements is NOT true? Response Variable is Sales
 Predictor  Coef  SE Coef  T  P  Constant 90.1925.083.600.001 Price 0.030550.010053.040.005 Advertising 3.09260.36808.400.000\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \\ \text { Price } & - 0.03055 & 0.01005 & - 3.04 & 0.005 \\ \text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000 \end{array}

S=10.6075RSq=84.48RSq(adj) =83.398S = 10.6075 \quad R - S q = 84.48 \quad R - S q ( a d j ) = 83.3 \frac { 9 } { 8 }


A) 84.4%84.4 \% of the variation in TV sales are explained by the model.
B) The coefficient of Price indicates that TV sales go down as Price increases.
C) The standard deviation of the residuals is about 10.6.
D) By the rule of thumb, the model could make errors as much as 20.2TV20.2 \mathrm { TV } sales.
E) All of the above are true.

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