Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. Using the output below, estimate
The number of units sold on average at a store that sells the Sony Bravia for $2199
And spends 10% of its advertising budget on the product. $$\begin{array}{l}
\text { Dependent Variable is Sales }\
\begin{array} { l r r r r }
\text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \
\text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \
\text { Price } & - 0.03055 & 0.01005 & - 3.04 & 0.005 \
\text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000
\end{array}
\end{array}$$
A) 53.94 units
B) 120 units
C) 66.54 units
D) 90.34 units
E) None of the above.

Question

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. Using the output below, estimate
The number of units sold on average at a store that sells the Sony Bravia for $2199
And spends 10% of its advertising budget on the product. $$\begin{array}{l}
\text { Dependent Variable is Sales }\
\begin{array} { l r r r r } 
\text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \
\text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \
\text { Price } & - 0.03055 & 0.01005 & - 3.04 & 0.005 \
\text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000
\end{array}
\end{array}$$
A) 53.94 units
B) 120 units
C) 66.54 units
D) 90.34 units
E) None of the above.

Quizplus · Accepted Answer

The equation for the regression is:Sales = 90.19 - 0.03055 * Price + 3.0926 * AdvertisingPlugging in the values for Price and Advertising, we get:Sales = 90.19 - 0.03055 * 2199 + 3.0926 * (0.10 * 2199)Sales = 90.19 - 67.47 + 68.91Sales = 91.63Therefore, the number of units sold on average at a store that sells the Sony Bravia for $2199 and spends 10% of its advertising budget on the product is 91.63 units.

Selling Price and Amount Spent Advertising Were Entered into a Multiple