The data referred to in this question were collected from several sales district

Question

The data referred to in this question were collected from several sales districts across the country. The data represent sales for a maker of asphalt roofing shingles. Information on the following variables is available.

Sales

Sales from last year in thousands of squares

Expenditures

Promotional expenditures in thousands of dollars

Accounts

Number of active accounts

Competing brands

Number of competing brands producing equivalent or similar products

District potential

A coded indicator of the potential of the district

(higher score = better potential)

Partial SPSS regression output of a multiple regression model with sales as the response variable and the other four variables as predictor variables are given below.

In an attempt to increase sales, the company can only directly influence some of these variables. It cannot change the number of competitors; it cannot change the district potential. The only two variables they can actively change are the number of active accounts and the promotional expenditures. Suppose they have $5000 to spend on new commercials (that is, promotional expenditures). By how much are sales expected to increase?

Or
9.035 squares

Please explain

Explanation / Answer

the partial regression coefficient of expenditure is 1.807 ,so if $5000 is to spend then expected increase in sales

=1.807*5000=9035 square

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