A company has recorded data on the weekly sales for its product

A company has recorded data on the weekly sales for its product (y), the unit price of the competitor's product (x1), and advertising expenditures (x2). The data resulting from a random sample of 7 weeks follows. Use Excel's Regression Tool to answer the following questions (data set also provided in accompanying MS Excel file).

Weekly sales data | |||

Week | Price | Advertising | Sales |

1 | 0.33 | 5 | 20 |

2 | 0.25 | 2 | 14 |

3 | 0.44 | 7 | 22 |

4 | 0.4 | 9 | 21 |

5 | 0.35 | 4 | 16 |

6 | 0.39 | 8 | 19 |

7 | 0.29 | 9 | 15 |

b. Determine whether the model is significant overall. Use α = 0.10.

c. Determine if competitor’s price and advertising is individually significantly related to sales. Use α = 0.10.

d. Based on your answer to part (c), drop any insignificant independent variable(s) and re-estimate the model. What is the new estimated regression equation?

e. Interpret the slope coefficient(s) of the model from part (d).

Hint

model 1 :SUMMARY OUTPUTRegression StatisticsMultiple R0.877814352R Square0.770558037Adjusted R Square0.655837056Standard Error1.837409752Observations7ANOVA dfSSMSFSignificance FRegression245.3528444722.676426.7168010.052643614Residual413.504298393.376075Total658.85714286 CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Intercept3.5976150864.0522438330.8878080.42...

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