DQuestion 20 50 pts Y-Losses1000 as the Response variable (measured in $1000\'s
ID: 3061086 • Letter: D
Question
DQuestion 20 50 pts Y-Losses1000 as the Response variable (measured in $1000's per year per office) and uses the following as X variables. Salr1000 Amount spent in Salary and total compensation at each location in $1000 LgComp-1 if there is a large competitor within the office's region located close to the office 0 otherwise (large competitor is far away) Market100 expenditures per year at each office in 100's of dollars And location of the office. Location is a dummy variable Canada -1 if office is located in Canada - 0 otherwise Omitted Category is USA Mexico -1 if office is located in Mexico; - 0 otherwise 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 LgComp 10700 4896 2.19 0.034 Salr1000 62.00 19.32 3.22 0.002 Canada 7700 4417 -2.75 0.032 Mexico 1200 3776 0.32 0.752Explanation / Answer
Solution: Using similar variables to those in regression 2) what regression would you run in order to find out if losses differe between Mexico and Canada.
Answer: Since the P value of Mexico is 0.752, which is greater than the significance level (Normally 0.05) and therefore makes it insignificant.
Hence the option 3 Include the other X variables but as far as location goes, include only Canada.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.