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# Regression Model - Potential Sales

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You have been hired as an economic analyst, your job is to use the Regression Model to estimate potential sales of your employer's product. Knowing that the "dependent variable" Q is the potential sales or quantity demanded, discuss the independent variables you will included in your analysis including their units of measurement.

https://brainmass.com/economics/regression/regression-model-potential-sales-149760

#### Solution Preview

There are lots of different variables that could be included in this regression analysis. The most important factor will be the price of the product. The units for this variable would be in dollars. For the rest, you can get ...

#### Solution Summary

The following posting helps with a problem involving a regression model.

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## Multiple Regression and Model Building: Zebra Wild Game Far East restaurants

See attached file.

The Zebra Wild Game Company sells exotic game to high end restaurants throughout the Far East. The sales manager wants to determine what, if any, relationship exists between the pounds of game sold by 24 sales persons and two independent variables, namely, the advertising dollars spent (in hundreds of thousands of dollars) and the market potential (in pounds).

Attached are the data and the multiple regression output.

Using the attached MegaStat output identify and interpret the p-values and the confidence intervals for the regression coefficients.

Round all value entries to four decimal places.

p-value for the regression coefficient b1 =

Interpretation of the p-value for the regression coefficient b1:

A. This is the probability of correctly concluding that there is a relationship between sales and years of experience.

B. This is the probability of incorrectly concluding that there is a relationship between sales and advertising expenditures.

C. This is the probability of correctly concluding that there is no relationship between sales and advertising expenditures.

D. This is the probability of incorrectly rejecting the alternative hypothesis, that there is a relationship between sales and advertising expenditures.

E. This value has no practical interpretation.

95% confidence interval for the regression coefficient b1 : [ , ]

Interpretation of the 95% confidence interval for the regression coefficient b1:

A. This says we are 95% confident that, for the given advertising expenditure of two hundred thousand dollars, the sales will be between these values.

B. This says we are 95% confident that in the population each additional one hundred thousand dollars of advertising will result in a decrease in sales between these values given a constant value for the market potential.

C. This says we are 95% confident that over many sales persons, the mean sales will be between these values.

D. This says we are 95% confident that in the population each additional one hundred thousand dollars of advertising expenditure will result in an increase in sales between these values given a constant value for the market potential.

E. This confidence interval has no practical interpretation

p-value for the regression coefficient b2 =

interpretation of the p-value for the regression coefficient b2 :

A. This is the probability of correctly concluding that there is a relationship between sales and the market potential.

B. This is the probability of incorrectly concluding that there is a relationship between sales and the market potential.

C. This is the probability of correctly concluding that there is no relationship between sales and the market potential.

D. This is the probability of incorrectly rejecting the alternative hypothesis, that there is a relationship between sales and the market potential

E. This value has no practical interpretation.

95% confidence interval for the regression coefficient b2 : [ , ]

Interpretation of the 95% confidence interval for the regression coefficient b2 :

A. This says we are 95% confident that in the population each additional pound of increase in the market potential will result in an increase of sales between these values given a constant value for the advertising expenditures.

B. This says we are 95% confident that, for the given market potential of 200, the sales will be between these values.

C. This says we are 95% confident that in the population each additional pound of market potential will result in a decrease in sales between these values.

D. This says we are 95% confident that over many sales persons, the mean sales will be between these values.

E. This confidence interval has no practical interpretation