2. Multiple coefficient of determination Aa Aa Macroeconomics is the study of th

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2. Multiple coefficient of determination Aa Aa Macroeconomics is the study of the economy as a whole. A macroeconomic variable is one that measures a characteristic of the whole economy or one of its large-scale sectors. In forecasting the sales of a product, market researchers frequently use macroeconomic variables in addition to marketing mix variables (marketing mix variables include product, price, place [or distribution], and promotion) A market researcher is analyzing an existing multiple regression model that predicts sales for different brands of digital cameras. The dependent variable is: ymonthly sales of specified digital camera (in thousands of dollars) The independent variables are the following marketing mix variables X1ratings given by a popular digital photography magazine X2 = average sale price (in dollars) x3advertising spending for the given month (in thousands of dollars) The estimated multiple regression equation using data with 42 observations is as follows: y 2,325 + 204x1-201x2 + 378x3 The regression just given yields a multiple coefficient of determination of R2-0.39 and an adjusted multiple coefficient of determination of R,-0.38. The multiple coefficient of determination indicates the proportion of variability in the dependent variable that can be explained by the regression model. The researcher would like to improve upon this model by including a macroeconomic variable that may affect sales. He decides to include the following variable: x4most recent quarterly GDP growth rate The estimated multiple regression equation with the additional independent variable is as follows: y 1,980 + 263x1-136x2+ 295x3 + 53x4

Explanation / Answer

as per chegg policies i am answering first 4 subparts.

The multiple coefficient of determination, R^2 is ratio of Sum of square of regression (SSR) to sum of squares of total (SST).

The R^2 for new regression is 0.4319, indicating that the new estimated multiple regression equation explains 43.19% of the variability of digital camera sales

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