TEST 31ect 5,67) F × unf edu/courses/28281/quizzes/99067/take Y Losses1000 as th
ID: 3060580 • Letter: T
Question
TEST 31ect 5,67) F × unf edu/courses/28281/quizzes/99067/take Y Losses1000 as the Response variable (measured in $1000's per year per office) and uses the following as X variables. Salr100 Amount spent in Salary and total compensation at each location in $1000 LgComp 1 if there is a large competitor within the office's region lacated close to the office 0 atherwise (large competitor is far away Market100 expenditures per year at each office in 100's of dollars And location of the office. Location is a dummy variable Canada -1 if office is located in Canada - 0 otherwise Omitted Category is USA Mexico -1 if office is lacated in Mexico; - O otherwise 2) Regression Analysis: Loss1000 versus Marketing, LgComp,. The regression output is Predictor Coef SE Coef T P Constant 22500 15250 148 0.146 Market100 -4000 1062 3.82 0.000 LgComp 10700 4896 2.19 0034 Salr 1000 62.00 19.32 3.22 0.002 Canada -7700 4417 -2.75 0.032 Mexica 1200 3776 0.32 0.752 Mkt2 98.00 20.02 4.04 0.000Explanation / Answer
As Y denotes losses, given omitted variable is USA
Beta of -7700 for Canada implies that when Canada is set to 1, losses reduce by 7700*1000 = 7,700,000 as compared to when Canada is set to 0 (USA).
Answer: Offices in Canada have losses that are 7,700,000 dollars less than in the USA.
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