A microcomputer manufacturer has developed a regression mode

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 (ADV in $1,000s) and the number of product lines (Lines). Part of the regression results is shown below. ANOVA df SS MS F Regression 2708.61 Error 14 2840.51 Coefficients Standard Error Intercept 1.0211 22.8752 Price -0.1524 0.1411 ADV 0.8849 0.2886 Lines -0.1463 1.5340 c. Compute the coefficient of determination and fully interpret its meaning.

d. At = 0.05, test to see if there is a significant relationship between sales and unit price.

e. At = 0.05, test to see if there is a significant relationship between sales and the number of product lines.

f. Is the regression model significant? (Perform an F test.)

g. Fully interpret the meaning of the regression (coefficient of price) per unit that is, the slope for the price per unit.

h. What has been the sample size for this analysis?

Solution