Question

Assume you have the following regression output for sales of Bose Speakers with R² = 0.74

Variable Name	Coefficient	P-Vale
Price of Bose speaker	-3.55	0.04
Price of Sony speaker	5.25	0.03
Income	0.0056	0.00
Advertising	1.0250	0.06
Population (in hundreds)	8.7850	0.02

Which variables are statistically significant and why?

If we increase advertising by $100, then what do expect, if anything, to happen to sales of Bose speakers?

If we observe the price of Sony speakers decreasing by $40, then what do we expect, if anything, to happen to sales Bose speakers?

Answer 1

. 4 p value <x then variable is significant Thus at 5l care of significance 420.05 more 6 Pence of Bose speaker, priie of sony speaker, & population are statstical significant .. 2 Advertisment increases by $100 then sales will increase by 8.7850 usut och sony speaker value dureases by $40 then demend deneases by 40 (5.25) ③ sales of bose speakers decreases by $210.