Question

Zelda Freeman is working on the release of a new video game and is trying to understand factors that might drive sales. To try to understand demand better, she decides to analyze data on similar games sold recently at some local retailers. She collects data on the number of units sold during a specified time period, which is her main variable of interest. She hypothesizes that the number of units sold is related to a few other factors, namely the advertising intensity (a composite measure of the amount spent using different media to promote the game), the dollar amount the game was discounted, whether the game was displayed at the end of the aisle or not (1=end of aisle, 0=not end of aisle) and whether the game was released during a holiday period or not (1=holiday period, 0=not a holiday period).

Zelda wants to try to understand the relatiobship between units sold and other variable.

Use the regression results to test to see if the overall model is significant. if any of the independent varible are relation to units sold at the .01 level of significance also find p value.

All other things being equal, how much do you estimate demand (units sold) will change for an extra until of advertising intensity? Rather than give a point estimate, give 95% confidence interval estimate.find left and right ride. if advertising intensity adds explanatory power to the model at the .01level of significance give the p-value that supports your conclusion

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.522893299
R Square	0.273417402
Adjusted R Square	0.248144964
Standard Error	891.0297919
Observations	120
ANOVA
	df	SS	MS	F	Significance F
Regression	4	34357649.97	8589412	10.81879794	1.7667E-07
Residual	115	91302420.35	793934.1
Total	119	125660070.3
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	979.3604453	376.1497637	2.603645	0.010439915	234.2801567	1724.44073
Discount	66.3876948	58.91028008	1.126929	0.262118525	-50.30223223	183.077622
Holiday?	741.1399017	184.4052416	4.019083	0.000104706	375.8686086	1106.41119
Advertising Intensity	5.947004533	8.277496588	0.718454	0.473934277	-10.44912313	22.3431322
End of Aisle?	760.6675364	182.0413719	4.178542	5.74295E-05	400.0786142	1121.25646

Answer 1

The p-value for the overall model is 1.7667E-07 that means 0.00000017667 which is less than 0.01 hence the overall model is significant.

The significant variable is Holiday because the p-value corresponding to Holiday in the regression output is 0.000104706 which is less than the level of significance 0.01.

The 95% confidence interval for the unit sold change for an extra unit of advertising intensity is -10.44912313 to 22.3431322 but advertising intensity does not add explanatory power to the model because it is not significant.

If you have more questions you can send them to us and we will try our best to help you out.

Good luck with your studies!!!