A market research analyst used multiple regression analysis to determine the impact of price and promotion on the sale of a new brand of cereal. The analyst collected data from three variables from 30 different stores, formulated a multiple regression model, and solved the model in Excel. The partial Excel regression output is reproduced in the following tables:

1. State the multiple regression equation for this problem.

2. Interpret the meaning of the coefficients of price and promotion in the Excel output.

3. Forecast the value of the sales during a month if the price of a box of the new cereal is US$3.29 and the monthly promotional expenditure is US$600.

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Standard Error Coefficients P-value tStatistic 503.627 Intercept 4857.845 2,892 9.27689E-07 Price -47.326 -6.61249 9.735284E-09 5.4287 4.55487 Promotion 5.3581 0.77463 9.54095E-05 P-value Df MS Regression 60891.48 14.76117 0.000286 121783 61876.68 4125.112 Residual 15 Total 17 183659.6