please answer the question in the same formatting as the question Macroeconomics

Question

please answer the question in the same formatting as the question

Macroeconomics is the study of the economy as a whole. A macroeconomic variable is one that measures a characteristic of the whole economy or one of its large-scale sectors. In forecasting the sales of a product, market researchers frequently use macroeconomic variables in addition to marketing mix variables (marketing mix variables include product, price, place [or distribution], and promotion) A market researcher is analyzing an existing multiple regression model that predicts sales for different brands of digital cameras. The dependent variable is: y monthly sales of specified digital camera (in thousands of dollars) = The independent variables are the following marketing mix variables: X1 X2 x3 ratings given by a popular digital photography magazine average sale price (in dollars) advertising spending for the given month (in thousands of dollars) = = = The estimated multiple regression equation using data with 39 observations is as follows: y = 2,387 + 200x1-200x2 + 347x3 The regression just given yields a multiple coefficient of determination of R2 = 0.43 and an adjusted multiple coefficient of determination of R2a 0.42. The multiple coefficient of determination indicates the proportion of variability in the dependent variable that can be explained by the regression model. The researcher would like to improve upon this model by including a macroeconomic variable that may affect sales. He decides to include the following variable:

Explanation / Answer

1. Regression sum of squares

2. Total sum of squares

3. 65054 / 140486 = 0.463 or 46.3%

4. 46.3%

5. 75432 / 140486 = 0.537

6. R-squared

7. 0.42

8. 1-0.42 = 0.58

9. R-squared

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