4. Great Plains ome repair Roofing and Siding Company Inc, sells roofing and sid

Question

4. Great Plains ome repair Roofing and Siding Company Inc, sells roofing and siding products to contractors. Th r retailers, such as Lowe's and Home Depot, and commercial e owner is interested in studying the effects of several variables on the value of shingles sold ($000). The company has divided the United States into 26 marketing districts. In each district it collected information on the following variables: volume of sales (in thousands of dollars), number of active accounts, and number of competing brands, The output for the analysis is shown below: Coefficients: Estimate Std. Error t value Pr Itl) Intercept) 186.6940 12.2587 15.23 1.66e-13*** Accounts 3.4081 0.1458 23.37 2.23e-16* Compete -21.1930 0.8028-26.40 2.5e-16** Signif. codes: O '…' 0.001 """ 0.01", 0.05: 0.1 , , 1 Residual standard error: 9.803 on 23 degrees of freedom Multiple R-squared: 0.9876, F-statistic: 918.3 on 2 and 23 DF, p-value:

Explanation / Answer

a) Regression equation would be

Volume of Sales = 186.6940+3.4081*No of Active Accounts-21.1930*No of Completing Brands

b) Null Hypothesis: Linear Regression equation is not significant

Alternate Hypothesis: Linear Regression equation is significant

c) Since p value of 2.2e-16 is less than significance level, we can say that Linear Regression is Significant

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