Question 15 50 pts Y- Losses1000 as the Response variable (measured in $1000\'s

Question

Question 15 50 pts Y- Losses1000 as the Response variable (measured in $1000's per year) and uses the following asx 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 CoefTP 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 9

Explanation / Answer

Here as we can see the regression coefficient for Large competitor assuming management wants to minimize losses is "10700" and as p- value is less than 0.05. So the regression coefficient is significant here.

So, mnagers should not locate close to a large competitor (vs far) as losses are 10700 more when a large cometitor is nearbuy. Option A is correct.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.