The following is part of the results of a regression analysis involving sales (Y
ID: 2922921 • Letter: T
Question
The following is part of the results of a regression analysis involving sales (Y in millions of dollars),advertising expenditures (X1 in thousands of dollars), and number of salespeople (X2) for acorporation. The regression was performed on a sample of 10 observations.
Coefficient
Standard Error
Constant
-11.340
20.412
X1
0.798
0.332
X2
0.141
0.278
b. If the company uses $50,000 in advertisement and has 800 salespersons, what are theexpected sales? Give your answer in dollars.
Coefficient
Standard Error
Constant
-11.340
20.412
X1
0.798
0.332
X2
0.141
0.278
Explanation / Answer
a) Y = -11.340+ 0.798X1 +0.141X2
b) X2 = 800, X1 = 50000
The expected sales Y is = -11.340 + 0.798*50000+0.141 * 800 = -11.340+39900+112.8 = 40001.46
The ex[cted sales is $40001.96
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