View the step-by-step solution to:

# he director of marketing at Vanguard Corporation believes that sales of the company's Bright Side laundry detergent (S) are related to Vanguard's own...

I am struggling with questions "d" and "e". Any help would be greatly appreciated.

he director of marketing at Vanguard Corporation believes that sales of the company’s Bright Side laundry detergent (S) are related to Vanguard’s own advertising expenditure (A), as well as the combined advertising expenditures of its three biggest rival detergents (R). The marketing director collects 36 weekly observations on S, A, and R to estimate the following multiple regression equation: S = a + bA + cR where S, A, and R are measured in dollars per week. Vanguard’s marketing director is comfortable using parameter estimates that are statistically significant at the 10 percent level or better. a. What sign does the marketing director expect a, b, and c to have? b. Interpret the coefficients a, b, and c. The regression output from the computer is as follows: c. DoesVanguard’sadvertisingexpenditurehaveastatisticallysignificanteffectonthe sales of Bright Side detergent? Explain, using the appropriate p-value. d. Does advertising by its three largest rivals affect sales of Bright Side detergent in a statistically significant way? Explain, using the appropriate p-value. e. What fraction of the total variation in sales of Bright Side remains unexplained? What can the marketing director do to increase the explanatory power of the sales equation? What other explanatory variables might be added to this equation? f. WhatistheexpectedlevelofsaleseachweekwhenVanguardspends\$40,000perweek and the combined advertising expenditures for the three rivals are \$100,000 per week? Dependent Variable: S R-Square F-Ratio P-Value on F Observations: 36 .2247 4.781 .0150 Variable Parameter Estimate Standard Error T-Ratio P-Value Intercept 175086 63821.0 2.74 .0098 A .8550 .3250 2.63 .0128 R -.284 .164 -1.73 .0927
Sign up to view the entire interaction

#### Top Answer

Hi Dear, Please find the solution of your posting. I hope it will... View the full answer

The director of marketing at Vanguard Corporation believes that sales of the company’s Bright Side laundry detergent (S) are related to Vanguard’s own advertising expenditure (A), as well as...

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents
• ### -

Question & Answers

Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

Ask a Question
Ask a homework question - tutors are online