Problems 1 - 4 all represent the same multiple regression case. (1) The manufact

Question

Problems 1 - 4 all represent the same multiple regression case. (1) The manufacturer of a light fixture believes that the amount spent on advertising, the price of the fixture, and the location of the retail stores selling the fixture during a particular month, influence the number of light fixture sales. The manufacturer randomly selected 12 months and collected the data. The sales are in thousands of units per month, the advertising is given in hundreds of dollars per month, and the price is the unit retail price for the particular month in dollars. The location is coded as follows: 0in the city and 1-in the suburbs. Using MINITAB, the following computer output was obtained. PREDICTOR Intercept Advertising Price Location COEF 32.00 1.03 0.48 3.56 SE COEF 8.73 0.04 0.33 0.86 002 .087 002 (a) Find bo on the output and report its value. (5 points) (b) Interpret bo. (5 points) (c) Interpret b2. (5 points)

Explanation / Answer

a) b0 is the intercept, and the value of b0 is 32

b) The expected mean value of the number of light fixture sales, when there is no amount spent on advertisement, the price of fixture is zero and location is also zero.

c) b2 = -0.48, When there is unit increase in price, the sales of the light fixture is decreased by 0.48, considering the other factors like amount spent on advertisement, price of fixture and location is constant.

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