ect unf edu/courses/28281/quizzes/99067/take Offices in Canada have losses that
ID: 3060581 • Letter: E
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ect unf edu/courses/28281/quizzes/99067/take Offices in Canada have losses that are 7700 dollars less than in the USA Offices in Canada have losses that are 7,700,000 dollars less than in the USA D Question 18 50 pts Y-Losses 1000 as the Response variable (measured in $1000's per year per office) and uses the follawing as X variables. Salr1000 Amount spent in Salary and total compensation at each location in $1000 LgComp -1 if there is a large campetitor within the office's region located close to the office -0 otherwise (large competitor is far away) Market100 expenditures per year at each affice in 100's of dollars, And location of the office. Lacation is a dummy variable Canada 1 if office is located in Canada 0 atherwise Omitted Category is USA Mexico 1 if office is located in Mexica; -O atherwise 2) Regression Analysis: Loss 1000 versus Marketing, LgComp The regression output is Predictor Coef SE Coef T P Constant 22500 15250 1.48 0.146Explanation / 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). Hence, relocating to Canada is beneficial as losses reduce by 7,700,000.
Answer: Option 3. Do spend money to locate in Canada vs USA
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