Question
In: Statistics and Probability
A store manager believes items with discounts (10% off, 20% off, etc.) sell better than items...
A store manager believes items with discounts (10% off, 20% off, etc.) sell better than items offered at full price. She also believes items with well-known brand names sell better than items not associated with a well-known brand. Furthermore, she believes that when the prices of brand-name items are discounted sales are much higher than normal.
You think this sounds like she is describing an interaction between brand-named and discounts and you want to use regression to test the effects of discounts, brands, and their interaction.
Assume that the manager provides the following IVs:
- sales number of sales (the DV
- item_cost cost of the item (a continuous IV)
- brand (0,1) brand=1 for items associated with a well-known brand and 0 otherwise
- discount (0,1) discount = 1 for items with discounted prices and 0 otherwise
Question: Write out the regression equation(s) you would use to test the hypothesis that there is an interaction between brands and discounts. Describe the procedure you would use to test the hypothesis.
Solutions
orchestra answered 1 year agoRelated Solutions
A store manager believes items with discounts (10% off, 20% off, etc.) sell better than items...
A store manager believes items with discounts (10% off, 20% off,
etc.) sell better than items offered at full price. She also
believes items with well-known brand names sell better than items
not associated with a well-known brand. Furthermore, she believes
that when the prices of brand-name items are discounted sales are
much higher than normal.
You think this sounds like she is describing an interaction
between brand-named and discounts and you want to use regression to
test the effects...
A store manager believes items with discounts (10% off, 20% off, etc.) sell better than items...
A store manager believes items with discounts (10% off, 20% off,
etc.) sell better than items offered at full price. She also
believes items with well-known brand names sell better than items
not associated with a well-known brand. Furthermore, she believes
that when the prices of brand-name items are discounted sales are
much higher than normal.
You think this sounds like she is describing an interaction
between brand-named and discounts and you want to use regression to
test the effects...
A manager at a local discount gym believes that less than 20% of gym members use...
A manager at a local discount gym believes that less than 20% of
gym members use the gym, at least 5 days a week. She randomly
selects 100 gym members and tracks (using the electronic login
system at the door) how many days they used the gym over the 2-week
period. The following are the results:
2
3
10
4
2
3
8
4
8
10
5
0
6
3
9
13
6
3
12
5
3
3
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1...
The manager of a department store believes that the mean annual income of the store's credit...
The manager of a department store believes that the mean annual
income of the store's credit card customers is at least $21,000.
For a sample of 90 customers the mean and standard deviation of
income were found to be $20700 and $1450 respectively.
(1) Use the tables in the textbook to determine the critical
value for the test statistic at the 5% level of significance. State
your answer correct to three decimal places.
(2) Determine the calculated test statistic correct...
McMurray & Sons is a retailer of stuffed animals. All items in the store sell for...
McMurray & Sons is a retailer of stuffed animals.
All items in the store sell for the same $18 selling
price.
McMurray estimates that 25% of its sales are for cash and 75% are
on account. Other
information regarding the company's budgeted sales and
collection of credit sales are as follows:
Budgeted sales in units
Credit Sales Collection
Pattern
December
9,000
Collected
in same month as sale
50%
January
1,000
Collected
1 months following sale
50%
February...
•Example: A manager of a liquor store believes that the proportions of customers preferring CURES Beer,...
•Example: A manager of a liquor store believes
that the proportions of customers preferring CURES Beer, HAMMERKILL
Beer, and MULER Beer are 40%, 30% and 30% respectively. The
following results were obtained from a random sample of 200
customers:
Cures
Hammerkill
Muler
#choosing this brand
70
63
67
•a) What type of data do we have here?
•b) Do the data provide sufficient evidence to indicate that the
distribution of customer preferences is significantly different
from the manager’s belief? Use...
A local grocery store wants to predict the monthly sales in dollars. The manager believes that...
A local grocery store wants to predict the monthly sales in
dollars. The manager believes that the amount of newspaper
advertising significantly affects the store sales. The manager
randomly selects 10 months of data consisting of monthly grocery
store sales (in thousands of dollars) and advertising expenditures
(in thousands of dollars). See the following data:
If the advertising expenditures increase by one thousand of
dollars, estimate the average increase in sales with 95%
confidence.
The next month, the grocery store...
1) Are individuals in the United States “better off ” economically now than they were at...
1) Are individuals in the United
States “better off ” economically now than they were at the
beginning of the twenty-first century? Why?
2) Obtain several recent issues of The
Wall Street Journal or Bloomberg Businessweek. Identify, read, and
be discuss at least one article relating to one of the six
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of the article.
3) Some economists believe that an
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1) Hoppe believes that a “natural aristocracy” is better than democracy for managing a society’s scarce...
1) Hoppe believes that a “natural aristocracy” is better than
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a. What is this “natural aristocracy” and why does Hoppe believe
democracy has failed? Do you agree with Hoppe, why or why not?
b. Hoppe believes that secessionist movements can help address
the failure of democracy in the modern western welfare-state? Why
is this?
Use an appropriate diagram to show that an income tax leaves a consumer better off than...
Use an appropriate diagram to show
that an income tax leaves a consumer better off than does an excise
tax that raises the same amount of revenue for the Government.
Explain your diagram fully.
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