unfedu/ccurses/28281/quizzes/99067/take There is not a man or a max for marketin

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unfedu/ccurses/28281/quizzes/99067/take There is not a man or a max for marketing O Losses are maxáimized when marketing expenditures are $20,400 50 pts Question 22 Y- Losses1000 as the Response variable (measured in $1000's per year per office) and uses the follawing as X variables. Salr1000 -Amount spent in Salary and total compensation at each location in $1000 LgComp -1 if there is a large competitar within the office's region located clase to the affice -0 atherwise (large campetitor is far away) Market100 expenditures per year at each office in 100's of dollars. And location of the office. Lacation is a dummy variable Canada -1 if office is located in Canada de -0 atherwise Omitted Category is USA Mexico -1 if affice is located in Mexico; O atherwise 2) Regression Analysis: Loss1000 versus Marketing, LgComp, The regression output is Predictor Coef SE Coef T P Constant 22500 15250 1.48 0.146 Market100 -4000 1062 -3.82 0.000

Explanation / Answer

Solution-

Estimated regression equation is as follows-

Losses1000 = 22500 -4000 * Market100 + 10700 * Lgcomp + 62 * Salary1000 - 7700 * Canada + 1200 * Mexico + 98 * Mkt2

As cofficient of market100 is -4000 which is negative and is significantly affecting the losses variable, then it should be advised not to spend on marketing as it is directly contributing to the mounting losses of the company.

Hence correct option is B.

Thanks!

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