Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables. Y=α+βaA+βpP+εY=α+βaA+βpP+ε Now suppose that the estimate of the model produces following results: α=344.585α=344.585, ba=0.102ba=0.102, bp=−11.192bp=−11.192, sba=0.173sba=0.173, sbp=4.487sbp=4.487, R2=0.813R2=0.813, and F-statistic=11.361F-statistic=11.361. Note that the sample consists of 10 observations. 1.)The given F-value shows that you cannot or can reject the null hypothesis that neither one of the independent variables explain a significant (at the 0.05 level) proportion of the variation in income. 2.)Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are $110,000and the selling price is $12.50? a.)213.792 b.)215.905 c.)193.465 3.) When promotional expenditures are $80,000 and the selling price is $12.50, the point price elasticity is -0.654, -0.648 or -0.723, and the point promotional price elasticity is 0.052 or 0.058.
Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables. Y=α+βaA+βpP+εY=α+βaA+βpP+ε Now suppose that the estimate of the model produces following results: α=344.585α=344.585, ba=0.102ba=0.102, bp=−11.192bp=−11.192, sba=0.173sba=0.173, sbp=4.487sbp=4.487, R2=0.813R2=0.813, and F-statistic=11.361F-statistic=11.361. Note that the sample consists of 10 observations. 1.)The given F-value shows that you cannot or can reject the null hypothesis that neither one of the independent variables explain a significant (at the 0.05 level) proportion of the variation in income. 2.)Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are $110,000and the selling price is $12.50? a.)213.792 b.)215.905 c.)193.465 3.) When promotional expenditures are $80,000 and the selling price is $12.50, the point price elasticity is -0.654, -0.648 or -0.723, and the point promotional price elasticity is 0.052 or 0.058.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter1: Equations And Graphs
Section: Chapter Questions
Problem 10T: Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s...
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Suppose the Sherwin-Williams Company has developed the following multiple regression model, with paint sales Y (x 1,000 gallons) as the dependent variable and promotional expenditures A (x $1,000) and selling price P (dollars per gallon) as the independent variables.
Y=α+βaA+βpP+εY=α+βaA+βpP+ε
Now suppose that the estimate of the model produces following results: α=344.585α=344.585, ba=0.102ba=0.102, bp=−11.192bp=−11.192, sba=0.173sba=0.173, sbp=4.487sbp=4.487, R2=0.813R2=0.813, and F-statistic=11.361F-statistic=11.361. Note that the sample consists of 10 observations.
1.)The given F-value shows that you cannot or can reject the null hypothesis that neither one of the independent variables explain a significant (at the 0.05 level) proportion of the variation in income.
2.)Based on the regression model, what is the best estimate of paint sales (x 1,000 gallons) in a sales region where promotional expenditures are $110,000and the selling price is $12.50?
a.)213.792
b.)215.905
c.)193.465
3.) When promotional expenditures are $80,000 and the selling price is $12.50, the point price elasticity is -0.654, -0.648 or -0.723, and the point promotional price elasticity is 0.052 or 0.058.
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