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 her perfume line. Using the data provided, you find a regression model, y = 4 - 3.36x1 + 2.00x2, with the undernoted parameters.

Parameters: R2= 0.88

Sig of F: 0.04

p-value of x1= 0.05

p-value of x2= 0.04

x1 denotes Selling price

x2 denotes Advertising

y denotes Demand

Kim asks you the following question please answer her. Would an unit increase in advertising (x2) result in an increase of at least 3 units in Demand (y), on average, while keeping selling price unchanged?

a.

Yes
b.

No
c.

Cannot say

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