Selling price and amount spent advertising were entered into a multiple regressi

Question

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. Based on the output below, which of the following statements is/are true? Dependent Variable is Sales Predictor Coef SE Coef T P Constant 90.19 25.08 3.60 .001 Price -.03055 .01005 -3.04 .005 Advert 3.0926 .3680 8.40 .000 S= 10.6075 R-Sq=84.4% R-Sq(adj)=83.3% Analysis of Variance Source DF SS MS Regression 2 16477.3 8238.7 Residual Err 27 3038.0 112.5 Total 29 19515.4 I. The multiple regression model is significant overall. II. Selling price is a significant independent variable in explaining Bravia sales. III. Amount Spent on Advertising is a significant independent variable in explaining Bravia sales. Select one: A. Only I and II B. I only C. I, II, and III D. II only E. III only

Explanation / Answer

Statement I : The multiple regression model is significant overall.

Yes, it is true as both the variables are significant as p - values are 0.01, 0.005 and 0.000 for Constant , Price and Advert respectively.

Statement II : Selling price is a significant independent variable in explaining Bravia sales.

YEs, as p - value is 0.005, which is significant

Statement III : Amount Spent on Advertising is a significant independent variable in explaining Bravia sales.

Yes, as p - value is 0.000, which is significant.

So, all the statement are true.

OPtion C is correct as Option I, II and III are correct.

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