You work for Segway, in the sales division of the One S1 (which is basically a m

Question

You work for Segway, in the sales division of the One S1 (which is basically a motorized unicycle without the seat). You’ve collected data on monthly sales (SS) and the price of the One S1 (P)P), both in dollars, as well as the daily average summer temperature in your most popular market (TT) in degrees Fahrenheit. You estimate the following regression model:

S=a+bP+cTS=a+bP+cT

In your regressions, you usually look for a 10%-or-better level of confidence.

Question 11

Answer saved

Marked out of 1.00

Flag question

Question text

The expected sign of

Select one:

a. b is negative and c is positive.

b. b is positive and c is positive.

c. b is negative and c is negative.

d. b is positive and c is negative.

Information

Flag question

Information text

Your regression yields the following results:

Dep. Var.: S
Adj. R-square 0.759

Question 12

Answer saved

Marked out of 1.00

Flag question

Question text

The estimated coefficient for aa (intercept) suggests that

Select one:

a. If PP and TT are zero, we could still expect about $62,741 in sales per month.

b. aa cannot be interpreted with confidence since its parameter estimate is not statistically significant.

c. Sales will be $62,741 per month when PP and TT are at their optimal values.

d. Sales will range between $7,912 and $62,741 per month, but not outside those limits.

Question 13

Not yet answered

Marked out of 1.00

Flag question

Question text

The estimated coefficient for bb (price of the One S1) suggests that

Select one:

a. a $1 increase in the price of the One S1 is associated with a decrease of monthly sales of $49.79.

b. monthly sales will increase by $10.22 if the price of the One S1 decreases by $49.79.

c. when price is close to $49.79, then consumers will demand one more unit per month if price drops by $10.22.

d. a one-dollar increase in price is associated with an increase in monthly sales of 10.22 units.

Question 14

Not yet answered

Marked out of 1.00

Flag question

Question text

The estimated coefficient for cc (daily average summer temperature) suggests that

Select one:

a. temperature has a more important effect on our sales than does the price of our units, since c>bc>b.

b. a one-degree increase in temperature is associated with a $32.84 decrease in monthly sales.

c. a one-degree increase in temperature is associated with a $58.60 increase in price.

d. a one-degree increase in temperature is associated with a $32.84 increase in monthly sales.

Question 15

Not yet answered

Marked out of 1.00

Flag question

Question text

The price of the One S1 has a statistically significant effect on our sales.

Select one:

True

False

Question 16

Not yet answered

Marked out of 1.00

Flag question

Question text

Daily average summer temperature affects the sales of the One S1 in a statistically significant way.

Select one:

True

False

Question 17

Not yet answered

Marked out of 1.00

Flag question

Question text

What portion of the total variation in sales of the One S1 remains unexplained?

Select one:

a. 10.22%

b. 0.241, or 24.1%

c. 0.759, or 75.9%

d. 49.79%

Question 18

Not yet answered

Marked out of 1.00

Flag question

Question text

Segway is considering selling the One S1 in a new city, where the average daily summer temperature is 75°, for a price of $580. What level of sales would you expect in this new city (rounded to the nearest dollar)?

Answer:

Variable Coefficient Standard Error t-stat P-value Intercept 62741 7912 7.930 0.00051 P -49.79 10.22 -4.872 0.00459 T -32.84 58.60 -0.561 0.59931

Explanation / Answer

(11) (c)

The higher (lower) the price, the lower (higher) the quantity sold, and the higher (lower) the temperature, the lower (higher) the demand for cycles.

(12) (a)

The intercept is the value of dependent variable when the independent variables are equal to zero.

(13) (a)

Since the coefficient is negative, an increase (decrease) in price will decrease (increase) sales.

(14) (b)

Since the coefficient is negative, an increase (decrease) in temperature will decrease (increase) sales.

NOTE: As per Chegg Answering Policy, first 4 questions are answered.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.