Question 3: Kurt's Hardware Store advertises and sells snow blowers each season. The following table provides...

 

Transcribed Image Text:

Question 3: Kurt's Hardware Store advertises and sells snow blowers each season. The following table provides the annual demand, level of advertising, in dollars, and snowfall, in inches, for the past eight years (25 points): Year 1 2 Demand (unit) 3 4 5 Advertising 41 38 26 43 33 6 30 7 34 8 37 a) Develop a simple regression model to predict the demand for snow blowers based on the number of $4000 $3500 $1800 Snowfall (inches) $2800 $3000 $2400 $2600 $2200 82 64 52 60 58 50 60 53 advertising dollars spent. b) What percentage of the demand variation is explained by the level of advertising? c) Next year's advertising budget is $2,600. What is the predicted demand for snow blowers? d) Develop a multiple regression model to predict the demand for snow blowers based on the advertising budget and the amount of snowfall. e) What is r-squared? Interpret r-squared. f) What is the predicted demand for snow blowers with an advertising budget of $2,600 and expected snowfall of 65 inches? Excel solution is required. Question 3: Kurt's Hardware Store advertises and sells snow blowers each season. The following table provides the annual demand, level of advertising, in dollars, and snowfall, in inches, for the past eight years (25 points): Year 1 2 Demand (unit) 3 4 5 Advertising 41 38 26 43 33 6 30 7 34 8 37 a) Develop a simple regression model to predict the demand for snow blowers based on the number of $4000 $3500 $1800 Snowfall (inches) $2800 $3000 $2400 $2600 $2200 82 64 52 60 58 50 60 53 advertising dollars spent. b) What percentage of the demand variation is explained by the level of advertising? c) Next year's advertising budget is $2,600. What is the predicted demand for snow blowers? d) Develop a multiple regression model to predict the demand for snow blowers based on the advertising budget and the amount of snowfall. e) What is r-squared? Interpret r-squared. f) What is the predicted demand for snow blowers with an advertising budget of $2,600 and expected snowfall of 65 inches? Excel solution is required.

Answer rating: 100% (QA)

029 1 2 3 4 5 6 7 8 9 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 fx 5 9 demand unit advertis... View the full answer