A supermarket chain analyzed data on sales of a particular
A supermarket chain analyzed data on sales of a particular brand of snack cracker at 104 stores in the chain for a certain 1- week period. The analyst tried to predict sales based on the total sales of all brands in the snack cracker category, the price charged for the particular brand in question, and whether or not there was a promotion for a competing brand at a given store (promotion = 1 if there was such a promotion, 0 if not). (There were no promotions for the brand in question.) A portion of the JMP multiple regression output is shown in the figure.
a. Interpret the coefficient of the promotion variable.
b. Should a promotion by a competing product increase or decrease sales of the brand in question? According to the coefficient, does it?
c. Is the coefficient significantly different from 0 at usual α values?
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