answers_spch_15 - Multiple Regression Chapter 15 Multiple...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Multiple Regression Chapter 15 Multiple Regression Solutions: 1. a. b 1 = .5906 is an estimate of the change in y corresponding to a 1 unit change in x 1 when x 2 is held constant. b 2 = .4980 is an estimate of the change in y corresponding to a 1 unit change in x 2 when x 1 is held constant. 4. a. y = 25 + 10(15) + 8(10) = 255; sales estimate: $255,000 b. Sales can be expected to increase by $10 for every dollar increase in inventory investment when advertising expenditure is held constant. Sales can be expected to increase by $8 for every dollar increase in advertising expenditure when inventory investment is held constant. 5. a. The Minitab output is shown below: The regression equation is Revenue = 88.6 + 1.60 TVAdv Predictor Coef SE Coef T P Constant 88.638 1.582 56.02 0.000 TVAdv 1.6039 0.4778 3.36 0.015 S = 1.215 R-Sq = 65.3% R-Sq(adj) = 59.5% Analysis of Variance Source DF SS MS F P Regression 1 16.640 16.640 11.27 0.015 Residual Error 6 8.860 1.477 Total 7 25.500 b. The Minitab output is shown below: The regression equation is Revenue = 83.2 + 2.29 TVAdv + 1.30 NewsAdv Predictor Coef SE Coef T P Constant 83.230 1.574 52.88 0.000 TVAdv 2.2902 0.3041 7.53 0.001 NewsAdv 1.3010 0.3207 4.06 0.010 S = 0.6426 R-Sq = 91.9% R-Sq(adj) = 88.7% Analysis of Variance Chapter 15 Source DF SS MS F P Regression 2 23.435 11.718 28.38 0.002 Residual Error 5 2.065 0.413 Total 7 25.500 Source DF Seq SS TVAdv 1 16.640 NewsAdv 1 6.795 c. No, it is 1.60 in part (a) and 2.29 above. In part (b) it represents the marginal change in revenue due to an increase in television advertising with newspaper advertising held constant. d. Revenue = 83.2 + 2.29(3.5) + 1.30(1.8) = $93.56 or $93,560 7. a. The Minitab output is shown below: The regression equation is Price = 356 - 0.0987 Capacity + 123 Comfort Predictor Coef SE Coef T P Constant 356.1 197.2 1.81 0.114 Capacity -0.09874 0.04588 -2.15 0.068 Comfort 122.87 21.80 21....
View Full Document

This note was uploaded on 01/31/2011 for the course MGMT 305 taught by Professor Priya during the Spring '08 term at Purdue University-West Lafayette.

Page1 / 7

answers_spch_15 - Multiple Regression Chapter 15 Multiple...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online