Question: The Hop Drop retail store manager is considering whether to promote Crops, the leading brand in a frequently purchased product category during the last week
The Hop Drop retail store manager is considering whether to promote Crops, the leading brand in a frequently purchased product category during the last week of June. There had been no promotions for some weeks and the retailer expects that this promotion will prove beneficial. The retailer has observed that weekly unit sales vary depending upon the month that the week is in and on whether a promotion has occurred in the current week or in the past week. Using historical data, the retailer has regressed weekly unit sales on monthly dummy variables and dummy variables for promotion and lagged promotion (coded 0 for no promotion and 1 for a promotion). The output from the regression is reproduced in the image below.
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