Heller Company manufactures lawnmowers and Telated lawn equipment. The managers

Question

Heller Company manufactures lawnmowers and Telated lawn equipment. The managers believe the quantity of lawnmowers sold depends on the price of the mower and the price of a competitor's mower Let quantity sold (1000s), = price of competitor's mower ($), and x2 = price of Heller's mower (s), The managers want an estimated regression equation that relates quantity sold to the prices of the Heller mower and the competitor's mower. The following table lists prices in 10 cities nde Quantity Sold Competitor's Price (r1 Heller's Price (r2) 120 140 190 130 155 175 125 145 180 150 100 110 90 150 210 150 250 270 300 250 102 100 120 77 46 93 26 69 65 85

Explanation / Answer

Hence, as we can see above the regression equation would be as shown below: -

y=66.52+0.41*Comp's Price-0.27*Heller's Price

For running multiple regression in spss, follow the below steps: -

1) Go to Analyze -> Regression -> Linear

2) Enter Dependent and Independent variables

3) Click on Statistics button

4) Select estimates, model fit and also the confidence intervals (as needed- 90, 95 etc)

5) Click on Continue

6) Click on OK

SUMMARY OUTPUT Regression Statistics Multiple R 0.81 R Square 0.65 Adjusted R Square 0.55 Standard Error 18.74 Observations 10 ANOVA df SS MS F Significance F Regression 2 4618.79 2309.39 6.58 0.02 Residual 7 2457.31 351.04 Total 9 7076.10 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 66.52 41.88 1.59 0.16 -32.51 165.54 Competitor's Price(x1) 0.41 0.26 1.59 0.16 -0.20 1.03 Heller's Price (x2) -0.27 0.08 -3.33 0.01 -0.46 -0.08

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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