Question: The data set given in DS 13.2.1 concerns the sales volume of a company, the price at which the company sells its product, and the

The data set given in DS 13.2.1 concerns the sales volume of a company, the price at which the company sells its product, and the price of a competing product for each of n = 10 quarter periods. Use this data set to fit the multiple linear regression model
y = β0 + β1x1 + β2x2
with the response variable y as the sales volume and with X] as the product price and x2 as the competitor's price.
(b) Is the variable competitor's price needed in the regression model? What is the sample correlation coefficient between the competitor's price and sales? What is the sample correlation coefficient between the competitor's price and the company's price? Interpret your answers.
(c) What is the sample correlation coefficient between the company's price and its sales? What sales would you predict if the company priced its product at $10.0 next quarter?

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b The variable competitors price has a pvalue of 0216 and is not needed in the model The samp... View full answer

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