Y Losses 1000 as the Response variable (measured in $1000\'s per year) and uses
ID: 3061078 • Letter: Y
Question
Y Losses 1000 as the Response variable (measured in $1000's per year) and uses the following as X variables Salr1000 = 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 located close to the office 0 otherwise (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 located in Mexico; 0 otherwise Regression Analysis: Losses versus Marketing, LgComp, The regression output is Predictor Coef SE Coef TP Constant 22500 15250 1.48 0.146 Market100 4000 1062 -3.82 0.000 LgComp 10700 4896 2.19 0.034 Salr1000 62.00 19.32 3.22 0.002 Canada 7700 4417 -2.75 0.032 Mexico 1200 3776 0.32 0.752 Mkt2 98.00 20.02 4.04 0.000Explanation / Answer
The regression equation is
y^ = 22500 - 4000 * market100 + 10700 * Lg comp + 62 * salar(1000) -7700 * canada + 1200 * Maxico + 98.00 * Market2
y^ = 22500 - 4000 * 10 + 10700 + 62 * 50 -7700 * 0 + 1200 * 0 + 98.00 * 10 * 10 = 6100
so total losses are 6,100,000 Option B is correct.
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