Question

Problem 3-30 Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line speakers. He is uncertain whether the unit price of the product or the effects of Increased marketing are the main drivers in sales and wants to regression analysis to figure out which factor drives more demand for its particular market. Pertinent Information was collected by an extensive project that lasted over the past 12 years and was reduced to the data that follow: YEAR 1 2 3 4 5 6 7 В 9 10 11 12 UNIT SALES (THOUSANDS) 375 675 875 1,306 1,165 1,197 875 1.112 984 1,237 Bag 813 PRICE S/UNIT 285 211 215 211 211 202 230 217 232 215 218 246 ADVERTISING (5000) 623 829 1.112 1,406 1.203 1,306 1.112 701 889 701 639 a. Perform a regression analysis based on these data using Excel. (Negative values should be indicated by a minus sign. Round your ans decimal places.) y = 2366.91 -7 269 Price +2443 Advertising c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $275 per unit and the amou on advertising (in thousands) was $875. (Enter your answer in thousands. Do not round Intermedlate calculations. Round your answer to decimal places.) Forecasted sales 958.58 thousand units kley-ukraine.....webp kiev-ukraine-....webp A a 2208-MARK.4....docx Task

Answer 1

675 Answer: Regression Equation is: Sales : 2366.91 - 7.269 * Price +0.2443 * Advertising Year Unit sales Price / Unit Advertising Predicted Sales 1 375 285 623 447.26 2 211 829 1035.51) 3 875 215 1112 1075.571 4 1306 211 1406 1176.48 5 1165 211 1203 1126.88 6 1197 202 1306 1217.47 7 875 230 889 912.05 8 1112 217 1112 1061.03 9 984 232 701 851.58 10 1237 215 889 1021.09 11 889 218 201 831.2 12 813 246 689 746.88 Predicted Average yearly Sales 958.58