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D Question 21 50 p Y Losses1000 as the Response variable (measured in $1000\'s p

ID: 3061087 • Letter: D

Question

D Question 21 50 p Y Losses1000 as the Response variable (measured in $1000's per year per office) 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 - O otherwise Omitted Category is USA Mexico 1 if office is located in Mexico; O otherwise 2) Regression Analysis: Loss1000 versus Marketing, LgComp.. The regression output is Predictor Coef SE Coef T P 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

Explanation / Answer

Correct answer: Option (D) There is ot a min or a max for marketing

since the response variable depends on Market100, LgComp, Salr1000, Canda, Medico and Mkt2
Only Marketing spend variable is not play role to minimize or maximize the Losses