# Multiple Regression Equation: Example Problems

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See file attached for data charts associated with each question.

a) A bicycle company wants to measure the effectiveness of different types of advertising media in the promotion of its new bicycle. Specifically, the company is interested in the effectiveness of radio advertising and newspaper advertising. A sample of 22 cities with approximately equal population is selected for study during a test period of one month. Each city is allocated a specific expenditure level both for radio advertising and for newspaper adverting. The sales of the bicycle (in thousands of dollars ) and also the levels of media expenditure (in thousands of dollars) during the test month are recorded.

Interpret the meaning of the regression coefficients, b0 (superscript 0)

What is the multiple regression equation?

b) A consumer organization wants to develop a regression model to predict gasoline mileage (MPG) based on the horsepower of the car's engine and the weight of the car in (pounds). A sample of 50 recents car models was selected, with the results shown at left.

Interpret the meaning of the slope for horsepower in this mode.

Predict the miles per gallon for a car that has 60 horsepower and weigh 2000 pounds.

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Solution:

a)

Interpret the meaning of the regression coefficients:

b0 means that sales will be $156430.4 when expenditure level both for radio advertising and for newspaper ...

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