Question: The following multiple regression printout can be used to predict the number of items sold given the current price (in dollars), the competitor's current price
The following multiple regression printout can be used to predict the number of items sold given the current price (in dollars), the competitor's current price (in dollars), and average income generated by the product (in dollars).
| Coefficients | ||||
|---|---|---|---|---|
| Term | Coef | SE Coef | T-Value | P-Value |
| Constant | 1,322,761 | 359,132 | 3.68 | 0.001 |
| Price ($) | 79,688 | 35,830 | 2.22 | 0.031 |
| Competitor Price ($) | 31,481 | 31,394 | 1.00 | 0.321 |
| Income ($) | 17.71 | 5.86 | 3.02 | 0.004 |
(a)Determine the multiple regression equation that can be used to estimate unit sales based on (own) price, competitor price, and income.
| unit sales | = | + (price) |
| + (competitor price) + (income) |
(b)Use this model to predict unit sales (in dollars) when price is $7, competitor price is $6, and income is $34,500.$
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