Question: You create one dummy variable for the sneaker color (Red=1 for red sneakers and Red=0 for blue sneakers) and run the regression on data collected

You create one dummy variable for the sneaker color (Red=1 for red sneakers and Red=0 for blue sneakers) and run the regression on data collected over ten years using the dummy variable and advertising expenditures as your independent variables. The equation you obtain is:

Sales=631,085+533,024(Red)+50.5(Advertising)

How would you interpret the regression model? How would you interpret the coefficient for red sneakers?

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