Question: Kim K. asks you to develop a demand forecast for her perfume line. Using the data provided, you find a regression model, y = 4

Kim K. asks you to develop a demand forecast for

Kim K. asks you to develop a demand forecast for her perfume line. Using the data provided, you find a regression model, y = 4 +3.36x1 + 5x2, with the undernoted parameters. Kim asks you the question below - please answer her. Parameters: R2=0.88 Sig of F: 0.04 p-value of x1= 0.05 p-value of x2= 0.04 x1 denotes Consumer Income x2 denotes Advertising y denotes Demand Would a unit increase in Consumer Income (x1) result in an increase of 3.36 units in Demand (y), on average? a. Yes, because for a 3.36 units increase in y, x increases by 1 unit b. No, because for a unit increase in y, x1 increases by 3.36 units OC. = O d. Yes, because for a unit increase in x1, y increases by 3.36 units on average, provided x2 kept constant

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!