Question: An analyst fits the following regression model using a sample data with sample size equals to 100: Profit = 30.23 - 20.62 Product Price +

An analyst fits the following regression model using a sample data with sample size equals to 100:

Profit = 30.23 - 20.62 Product Price + 50.25 Product Quality +

The analyst finds that the Global F test is higher significant, and the 4 assumptions about the random error term are all satisfied. Hence, he concludes that Quality is a more important factor than Price in affecting the Profit, and recommend the company to put more resources in enhancing the Quality of the product in order to push Profit up.

Do you agree with his conclusion? List two reasons to support your answer.

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