A marketing manager in marketing manager in charge of a profit center for Max in

Question

A marketing manager in marketing manager in charge of a profit center for Max interested in developing a multiple regression model to predict the marketing budget Y (in tens of thousands of dollars) allowed for a product from previous product sales X1 (in tens of thousands of dollars) and the stage of the life cycle for the product X2. The life cycle of the product is coded as growth 0 and maturity 1. Data were collected for 20 products and are presented below t Stores Company is Sales 36 53 Budget Cycle Budget Sales Cycle 10 51 10 50 3 28 63 10 61 4 2 o946 46 52 46 72 12 Run a regression analysis and answer the below questions regressed on X1 and X2 . Briefly interpret the Find the multiple regression equation for equation b. Find the predicted value for Y given X1-50 and X2 c Find SST, SSR, SSE, n-k-1, MSR, table. d. Find the value of the standard error of and MSE, and present the results in an analysis of variance the estimate, Sysz. Briefly interpret the results e. Find the coefficien Find the coefficient of mutiple determination R-squared. Brietly interpret the results f. is multicollinearity a problem? Indicate why or why not g Test significant level of 05. h. Test each independent variable separately to see whether it contributes explanatory power to the regression equation that is test Ho: bj - 0 against Ha -0. Use 05 for thnce.ariable over and above that provided by the other or the level of significance independent variable, Ha-o Use 05 for the level of significance. What suggestions would you would you make to improve the regression model?

Explanation / Answer

1. Multiple regression equation

Y=0 + 1X1+ 2 X2 +ei

Where X1 is Sales and X2 is lifecycle

The regression equation is

Y= 2.216647+ .0709742X1 + 3.544847 X2 +ei

2.Predicted y for given X1=50 and X2=1 equals   9.310205

3.Standard error of 1 is 0.0152085 and 2 is 0.394042

4. R-squared =0.8884 and Adjusted R-Square is 0.8752

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