Question

A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company conducted a simple linear regression and the result from excel is below

Regression Statistics
Multiple R		0.875145811
R Square		0.76588019
Adjusted R Square		0.719056228
Standard Error		16.76656463
Observations		7
Coefficients		Standard Error		t Stat	P-value
Intercept	155		24.0127		6.4549	0.00132407
Price	-44		10.8816		-4.044	0.00988046

1= If the price of the candy bar is set at $2, the estimated mean sales will be

2= What is the standard error of the estimate, , for the data

3= To test whether a change in price will have any impact on sales, what would be the critical values? Use α = 0.05

		± 2.4469
		± 4.044
		± 2.5706
		± 2.7765

4= The regression equation (=50+10 X) shows sales by million Riyals (Y) at a proposed advertising budget​ by million Riyals (X). Which of the following is the correct interpretation of the​ intercept?

		The​ Y-intercept implies that the average value of sales​ is 50 million Riyals
		The​ Y-intercept implies that when the value of the advertising budget is​ 0 million Riyals, the mean value of sales​ is 10 million Riyals
		The​ Y-intercept implies that 1 million Riyals increase in the advertising budget​ is estimated to increase the sales​ value by 50 million Riyals
		The​ Y-intercept implies that when the value of the advertising budget is​ 0 million Riyals, the mean value of the sales is 50 million Riyals

5= What percentage of the total variation in candy bar sales is explained by prices?

		87.51%
		44%
		16.76%
		76.58%

6= What is the estimated intercept for the candy bar price and sales data?

7= What is the estimated slope for the candy bar price and sales data?

		0.76
		155
		-44
		16.76

8= What is the standard error of the regression slope estimate   : ( )

Answers only !!

Answer 1