Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales = β0 + β1Population + β2Income + ε, where Sales refers to the sales of StrongBones (in $1,000,000s), Population is the number of women over the age of 60 (in millions), and Income is the average income of women over the age of 60 (in $1,000s). She collects data on 38 cities across the United States and obtains the following regression results: Coefficients Standard Error t Stat p-Value Intercept 10.35 4.02 2.57 0.0199 Population 8.47 2.71 3.12 0.0062 Income 7.62 6.63 1.15 0.2661 a. What is the sample regression equation? (Enter your answers in millions rounded to 2 decimal places.) b-1. Interpret the coefficient of population. multiple choice 1 As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $8.47 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.62 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $8.47 million, holding income constant. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.62 million, holding income constant. b-2. Interpret the coefficient of income. multiple choice 2 As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.62 million. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.47 million. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.62 million, holding population constant. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.47 million, holding population constant. c. Predict sales if a city has 1.5 million women over the age of 60 and their average income is $44,000. (Enter your answer in millions rounded to 2 decimal places.)

Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales = β0 + β1Population + β2Income + ε, where Sales refers to the sales of StrongBones (in $1,000,000s), Population is the number of women over the age of 60 (in millions), and Income is the average income of women over the age of 60 (in $1,000s). She collects data on 38 cities across the United States and obtains the following regression results: Coefficients Standard Error t Stat p-Value Intercept 10.35 4.02 2.57 0.0199 Population 8.47 2.71 3.12 0.0062 Income 7.62 6.63 1.15 0.2661 a. What is the sample regression equation? (Enter your answers in millions rounded to 2 decimal places.) b-1. Interpret the coefficient of population. multiple choice 1 As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $8.47 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.62 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $8.47 million, holding income constant. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.62 million, holding income constant. b-2. Interpret the coefficient of income. multiple choice 2 As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.62 million. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.47 million. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.62 million, holding population constant. As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.47 million, holding population constant. c. Predict sales if a city has 1.5 million women over the age of 60 and their average income is $44,000. (Enter your answer in millions rounded to 2 decimal places.)

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter4: Eigenvalues And Eigenvectors

Section4.6: Applications And The Perron-frobenius Theorem

Problem 25EQ

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	Coefficients	Standard Error	t Stat	p-Value
Intercept	10.35	4.02	2.57	0.0199
Population	8.47	2.71	3.12	0.0062
Income	7.62	6.63	1.15	0.2661

a. What is the sample regression equation? (Enter your answers in millions rounded to 2 decimal places.)

b-1. Interpret the coefficient of population.

multiple choice 1

As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $8.47 million.
As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.62 million.
As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $8.47 million, holding income constant.
As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.62 million, holding income constant.

b-2. Interpret the coefficient of income.

multiple choice 2

As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.62 million.
As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.47 million.
As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.62 million, holding population constant.
As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.47 million, holding population constant.

c. Predict sales if a city has 1.5 million women over the age of 60 and their average income is $44,000. (Enter your answer in millions rounded to 2 decimal places.)

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