Can you help with F (relprice) & how to get H? Thank you Medicorp Company, which
ID: 3324724 • Letter: C
Question
Can you help with F (relprice) & how to get H? Thank you
Medicorp Company, which sells medicaluppies to health car ing its new bonusprogram. The program providetonusevareprinden,2, performance. Medicorp management wants to know whether he had an eflect on 1996 sales. You have been asked to help the des pud model to esplain sales. You have a random sample of 50 of Mdpe ritories containing the following information on each territory 65 to salesperple he, sales. You have been asked to help them deve Amount spent on advertising in 1906 (S1.000 ADV BONUSTotal amount of bonuses paid in 1995 ($1,000 RELPRICE Mediarp's average price relative to the rdstry aver COMPET Largest competitor's sales 1$1.000) SALES Medicorp's sales in 1996 (S1.000) The partial Excel results are shown here: SSExplained1.237904 MSUnexplained = 24,665 ANOVA df MS F Significance Regression Residual Total Coefficients Standard Error tStat p-value 5.45 0.0001 0,0001 3.02 3 840.0003 L 0.0955 162.1 1.8 889.1 Intercept ADV BONUS RELPRICE COMPET 10.8 11.6 -122 71.65 i -0.18 0.15 a. Complete the ANOVA table. b. Find R. Explain what the number tells you about this regression model. c. What should R2 be if all variations in SALES have been explained by our d. Test whether SALES is related to any of the X's (the overall signifcaar d t model). Use a significance level of 0.01. e. Test whether SALES is related to BONUS. Use a significance r. Explain in the context of this problem what the numbers for the level of ads. following ficients mean: ADV, BONUS, RELPRICE g. Find a 95 confidence interval for BONUS. What parameter does interval bracket? h. Management expects the following in 1997 for the Ralcigh sales Amount spent on advertising: 60 (51.000) Amount paid in bonuses in 1997: 45 (51.000) Average price relative to the industry average: 0.7 Largest competitor's sales: 100 ($1,000) Forecast 1997 sales for the Raleigh sales temitory.Explanation / Answer
f)
we see that the coefficient of relprice is
-122
so this means that for every unit increase in the value of average price relative to the industry average , the salary decreases by 122 units
h)
we form the regression equation using the coefficients as
salary = 889.1 +10.8*adv +11.6*bonus -122*relprice -0.18*compet
we put the given values in the equation
salary = 889.1 +10.8*60 +11.6*45 -122*0.7 -0.18*100
= 1955.7