Question

1.

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. The regression coefficient for Price was found to be -0.03055, which of the following is the correct interpretation for this value?

Select one:

A. Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by 0.03%.

B. None of these.

C. For a given amount spent on advertising, a $100 increase in price of the Sony Bravia is associated with a decrease in sales of 3.055 units, on average.

D. Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by 3.055 units.

E. Increasing the price of the Sony Bravia by $100 will result in at least 3 fewer TV's sold.

2.

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 — 100). The regression coefficient for the variable Trust Index is -0.07149. The correct interpretation of this value is

Select one:

A. For companies that give the same average annual bonus, an increase of 10 points on the trust index is associated with an increase of 0.71% in turnover rate, on average.

B. None of these.

C. Holding average annual bonus constant, increasing the trust index by 10 points will decrease the turnover rate by 7.1%.

D. An increase of 10 points on the trust index results in a decrease of 7.1% in turnover rate.

E. For companies that give the same average annual bonus, an increase of 10 points on the trust index is associated with a decrease of 0.71% in turnover rate, on average.

3.

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. The regression coefficient for Advertising was found to be +3.0926, which of the following is the correct interpretation for this value?

Select one:

A. At a given price, increasing the amount spent on advertising the Sony Bravia over the previous quarter will increase sales by 3.0926 units, on average.

B. While price negatively affects the number of Sony Bravia LCD TV’s sold, an increase in the amount of money spent on advertising will result in at least 3 additional TV’s sold.

C. At a given price, a one percent increase in the amount spent on advertising the Sony Bravia over the previous quarter is associated with an increase in sales of 3.0926 units, on average.

D. None of these.

E. A one percent increase in the amount spent on advertising the Sony Bravia over the previous quarter will increase sales by 3.0926 units, on average.

Answer 1

1.Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. The regression coefficient for Price was found to be -0.03055, which of the following is the correct interpretation for this value?

The correct option is as follows:C. For a given amount spent on advertising, a $100 increase in price of the Sony Bravia is associated with a decrease in sales of 3.055 units, on average.

Because negative sign of the coefficient of selling price indicate as increase in selling price implies that there is decrease in affects flat panel LCD TV sales.

So that $100 increase in selling price the decrease = 100*0.03050 = 3.055.

2.

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 — 100). The regression coefficient for the variable Trust Index is -0.07149. The correct interpretation of this value is

The regression coefficient for the variable Trust Index is -0.07149.

That is independent variable = "Trust Index "

E. For companies that give the same average annual bonus, an increase of 10 points on the trust index is associated with a decrease of 0.71% in turnover rate, on average.

Since the sample is collected on 33 companies.

3.

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. The regression coefficient for Advertising was found to be +3.0926, which of the following is the correct interpretation for this value?

Here sign of a coefficient of regression is positive , so as independent variable increase by one units implies that the increase in dependent variable is same as coefficient of regression.

So correct choice is at follows:

A. At a given price, increasing the amount spent on advertising the Sony Bravia over the previous quarter will increase sales by 3.0926 ( =100 * 0.30926 )