osteoporosis is a degenerative disease that primarily affects women over the age
ID: 3217669 • Letter: O
Question
osteoporosis is a degenerative disease that primarily affects women over the age of 48. A research analyst wants to forecast sales of StrongBones, a prescription drug for treating this debilitating disease. She uses the model Sales Bo B1Population B2Income E, where Sales refers to the sales of StrongBones average Population is the number of women over the age of 48 (in millions), and Income is the States income of women over the age of 48 ($1,000s). She collects data on 2 cities across the United and obtains the following relevant regression results: Standa Coefficients Error t Stat p-Value Intercept 10.01 3.49 2.87 0.0141 Population 8.10 1.23 6.58 0.0071 Income 7.51 6.30 1.19 0.3562 a. What is the sample regression equation? (Enter your answers in millions rounded to 2 decimal places.) Sales Population Income. b-1. Interpret the coefficient of Population. O As the number of women over the age of 48 increases by 1 million, sales of StrongBones is predicted to increase by $8.10 million. O As the number of women over the age of 48 increases by 1 million, sales of StrongBones is predicted to increase by $7.51 million. O As the number of women over the age of 48 increases by 1 million, sales of StrongBones is predicted to increase by $8.10 million, holding income constant. O As the number of women over the age of 48 increases by 1 million, sales of StrongBones is predicted to increase by $7.51 million, holding income constant.Explanation / Answer
a) Sales(Hat) = 10.01+ 8.10Population + 7.51Income
b) Option c) As the number of women over the age of 48 increased by 1 million, Sales of strong bpnes is predicted to be increased by$ 8.10 million, holding income constant.
b-2) option d) As the average income women over the age of 48 increased by 1 million, Sales of strong bpnes is predicted to be increased by$ 7.51million, holding population constant.
c) Sales = 10.01+ 8.10*(1.9)+7.51*(39000) = 10.01+15.39+292890 = 292915.4
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