Observations are taken on sales of a certain mountain bike in 30 sporting goods
ID: 3042229 • Letter: O
Question
Observations are taken on sales of a certain mountain bike in 30 sporting goods stores. The regression model was Y = total sales (thousands of dollars), X1 = display floor space (square meters), X2 = competitors' advertising expenditures (thousands of dollars), X3-advertised price (dollars per unit) Predictor Intercept FloorSpace CompetingAds Price Coefficient 1,230.93 11.36 -6.828 0.1476 (a) Write the fitted regression equation. (Round your coefficient CompetingAds to 3 decimal places coefficient Price to 4 decimal places, and other values to 2 decimal places. Negative values should be indicated by a minus sign.) FloorSpace + CompetingAds+ rice (b-1) The coefficient of FloorSpace says that each additional square foot of floor space O adds about 11.36 to sales (in thousands of dollars) O adds about 6.828 to sales (in thousands of dollars) O takes away 0.1496 from sales (in thousands of dollars) O takes away 11.36 from sales (in thousands of dollars) (b-2) The coefficient of CompetingAds says that each additional $1,000 of "competitors' advertising expenditures" O takes away 0.1476 from sales (in thousands of dollars) O takes away 11.36 from sales (in thousands of dollars). O adds about 6.828 to sales (in thousands of dollars) O reduces sales by about 6.828 from sales (in thousands of dollars) (b-3) The coefficient of Price says that each additional $1 of advertised price O takes away 11.36 from sales (in thousands of dollars) O adds about 6.828 to sales (in thousands of dollars) O reduces sales by about 6.828 from sales (in thousands of dollars). O reduces sales by about 0.1476 from sales (in thousands of dollars). (c) The intercept is not meaningful, since a mountain bike cannot sell for zero, which will happen if all the variables are zero False rue (d) Make a prediction for Sales when Floorspace 76, CompetingAds = 109, and Price = 1,124. (Enter your answer in thousands. Round your answer to 2 decimal places.) Sales thousandExplanation / Answer
a). y = 1230.93 + 11.36*X1 + (-6.828)*X2 + (-0.1476)*X3
y = 1230.93 + 11.36*X1 -6.828*X2 + 0.1476*X3
b-1). adds about 11.36 to sales (in thousands of dollars)
b-2) reduces sales by about 6.828 from sales (in thousands of dollars)
b-3) reduces sales by about 0.1476 from sales (in thousands of dollars)
c) true
d) sales (y) = 1230.96 + 11.36*76 + (-6.828)*109 + (-0.1476)*1124
=1230.96 + 863.36- 744.252 - 165.9024
= 1184.16
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