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Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow: YEAR 1 IN34567 2 8 9 10 11 12 UNIT SALES (THOUSANDS) 385 685 885 y bar = 1,285 1,195 1,185 885 1,105 976 1,237 875 803 PRICE $ PER UNIT 277 218 215 208 218 192 Forecasted sales 223 201 221 215 229 246 a. Perform a regression analysis based on these data using Excel. Note: Negative values should be indicated by a minus sign. Round your answers to 4 decimal places. + ADVERTISING ($000) 615 832 1,105 1,405 1,205 1,285 875 1,105 697 875 697 697 Price + c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $285 per unit and the amount spent on advertising (in thousands) was $885. Note: Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places. thousand units advertising

Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow: YEAR 1 IN34567 2 8 9 10 11 12 UNIT SALES (THOUSANDS) 385 685 885 y bar = 1,285 1,195 1,185 885 1,105 976 1,237 875 803 PRICE $ PER UNIT 277 218 215 208 218 192 Forecasted sales 223 201 221 215 229 246 a. Perform a regression analysis based on these data using Excel. Note: Negative values should be indicated by a minus sign. Round your answers to 4 decimal places. + ADVERTISING ($000) 615 832 1,105 1,405 1,205 1,285 875 1,105 697 875 697 697 Price + c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $285 per unit and the amount spent on advertising (in thousands) was $885. Note: Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places. thousand units advertising

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.3: Simple Regression Models
Problem 6P: Do the sales prices of houses in a given community vary systematically with their sizes (as measured...
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Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow: YEAR 1 H234567 8 9 10 11 12 UNIT SALES (THOUSANDS) 385 685 885 y bar = 1,285 1,195 1,185 885 1,105 976 1,237 875 803 PRICE $ PER UNIT 277 218 215 Forecasted sales 208 218 192 + 223 201 221 215 229 246 a. Perform a regression analysis based on these data using Excel. Note: Negative values should be indicated by a minus sign. Round your answers to 4 decimal places. ADVERTISING ($000) 615 832 1,105 1,405 1,205 1,285 875 1,105 697 875 697 697 Price + c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $285 per unit and the amount spent on advertising (in thousands) was $885. Note: Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places. thousand units advertising
Transcribed Image Text:Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow: YEAR 1 H234567 8 9 10 11 12 UNIT SALES (THOUSANDS) 385 685 885 y bar = 1,285 1,195 1,185 885 1,105 976 1,237 875 803 PRICE $ PER UNIT 277 218 215 Forecasted sales 208 218 192 + 223 201 221 215 229 246 a. Perform a regression analysis based on these data using Excel. Note: Negative values should be indicated by a minus sign. Round your answers to 4 decimal places. ADVERTISING ($000) 615 832 1,105 1,405 1,205 1,285 875 1,105 697 875 697 697 Price + c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $285 per unit and the amount spent on advertising (in thousands) was $885. Note: Enter your answer in thousands. Round your intermediate calculations and final answer to 2 decimal places. thousand units advertising
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