Coefficient s Standard Error Intercept 1.0211 22.8752 Price -0.1524 0.1411 Adver
ID: 3396117 • Letter: C
Question
Coefficients
Standard Error
Intercept
1.0211
22.8752
Price
-0.1524
0.1411
Adver
0.8849
0.2886
Lines
-0.1463
1.5340
A microcomputer manufacturer has developed a regression model relating his sales (y in $10,000s) with three independent variables. The three independent variables are price per unit (Price in $100s), advertising (Adver in $1,000s) and the number of product lines (Lines). Part of the regression results is shown below.
If the manufacturer has 10 product lines, advertising of $40,000, and the price per unit is $3,000, what is your estimate of their sales? Give your answer in dollars.
Coefficients
Standard Error
Intercept
1.0211
22.8752
Price
-0.1524
0.1411
Adver
0.8849
0.2886
Lines
-0.1463
1.5340
Explanation / Answer
Y = 1.0211 - 0.1524(Price) + 0.8849(Adver) - 0.1463(Lines)
So, for lines = 10, adver = $40,000 and price = $3000.
Y = 1.0211 - 0.1524(30) + 0.8849(40) - 0.1463(10)
So, Y = 1.0211 - 4.572 + 35.396 - 1.463
So, Y = 30.3821
So, Estimeated sales = $303821.