Branded Products, Inc., based in Oakland, California, is a leading producer and marketer of household laundry detergent and bleach products. About a year ago, Branded Products rolled out its new Super Detergent in 30 regional markets following its success in test markets. This isn't just a “me too” product in a commodity market. Branded Products' detergent contains Branded 2 bleach, a successful laundry product in its own right. At the time of the introduction, management wondered whether the company could successfully crack this market dominated by Procter & Gamble and other big players.

The following spreadsheet shows weekly demand data and regression model estimation results for Super Detergent in these 30 regional markets:

Regression Statistics

R Square ........... 90.4%

Standard Error ......... 34.97

Observations ........... 30

A. Interpret the coefficient estimate for each respective independent variable.
B. Characterize the overall explanatory power of this multiple regression model in light of R2 and the following plot of actual and estimated demand per week.

C. Use the regression model estimation results to forecast weekly demand in five new markets with the followingcharacteristics:

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Coefficients Standard Stat Erro Intercept Price. P Competitor Price, P Advertising, Ad Household Income, I 807.938 -5.034 4.86 0.328 0.009 137.846 0.457 1.006 0.104 0.001 5.86 4.09E-06 11.02 4.34E-11 4.83 3.14 0.0042932 7.992.38E-08 5.74E-05 Branded Products Demand Forecasting Problem RegionalDemand Price per Competito Advertisin Household Estimated Market in Cases, Case, P r Price, Pg, Ad Income, I Demand, 11,290 $137 94 814 $53,123 1,30:5 896 51,741,206 852 49,881 1,204 854 43,59 1,326 810 42,799 1,185 768 555651,208 978 37.9591,333 47,196 1,328 843 50,163 1,366 1,176 797 43,2631,264 988 51,29,359 914 38,3431,345 913 39,473 1,199 867 51,501 1433 785 37,8091,024 817 41,4711,216 846 46,663 1,449 768 55,8391,220 856 47,4381,326 771 54,348 1,304 2 1,177147 1,166 1,186 9 1,338 11 1,293 13 1,299 84939,080 15 1,467 117 16 1,089 181,474 19 1,235 20 1,367 21 1,310 1,331 947 45.066 1,302 23 1,293 24 1,437 25 1,165145 26 1,328 27 1,515 28 1,223 29 1,293 30 1215 127 831 44,166 1,288 905 55,3801,476 996 38,66 1,208 929 46,084 1,00052, 951 50,855 ,226 Average1,286 Minimum 1,089 Maximum 1.515 891 38,085 1215 870 46,788 1,286 768 37,809 1,024 Branded Products Inc.Actual and Fitted Demand 1,500 1 1,500 1400 1400 1.200 1100 1.000 1,000 -Fd demand 300 500 500 500 400 200 200 1 z 3 4 6 7 홉 9 11 12延긺 151617 ísIP 20 21 22 23 24 2526 27 23 29 30 R ional Market