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 = B0 + B1 Population + B2 Income + E, where Sales is the sales of Strong Bones (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 32 cities across the United States and obtains the following regression results: Coefficients Standard Error t Stat p-Value Intercept Population Income 10.01 3.93 2.55 0.0231 8.19 2.20 3.72 0.0338 7.24 6.40 1.13 0.3758 a. What is the sample regression equation? Note: Enter your answers in millions rounded to 2 decimal places. Sales = Population + Income b-1. Interpret the coefficient of population. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.24 million. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million, holding income constant. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.24 million, holding income constant. b-2. Interpret the coefficient of income. O As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $8.19 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.24 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.19 million, holding population constant. ○ As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $7.24 million, holding population constant. c. Predict sales if a city has 2.0 million women over the age of 60 and their average income is $38,000. Note: Enter your answer in millions rounded to 2 decimal places. Sales =

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 = B0 + B1 Population + B2 Income + E, where Sales is the sales of Strong Bones (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 32 cities across the United States and obtains the following regression results: Coefficients Standard Error t Stat p-Value Intercept Population Income 10.01 3.93 2.55 0.0231 8.19 2.20 3.72 0.0338 7.24 6.40 1.13 0.3758 a. What is the sample regression equation? Note: Enter your answers in millions rounded to 2 decimal places. Sales = Population + Income b-1. Interpret the coefficient of population. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million. As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.24 million. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $8.19 million, holding income constant. As the number of women over the age of 60 increases by 1 million, sales of Strong Bones is predicted to increase by $7.24 million, holding income constant. b-2. Interpret the coefficient of income. O As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $8.19 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.24 million. ○ As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.19 million, holding population constant. ○ As the average income of women over the age of 60 increases by $1,000, sales of Strong Bones is predicted to increase by $7.24 million, holding population constant. c. Predict sales if a city has 2.0 million women over the age of 60 and their average income is $38,000. Note: Enter your answer in millions rounded to 2 decimal places. Sales =

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 43P

See similar textbooks