Question

As the marketing manager for TriFoods, you want to determine whether store Sales (number sold in one month) of TriPower bars are related to the Price (in cents) of TriPower bars and in-store Promotional expenditures (in dollars) for TriPower bars. You conduct a multiple regression analysis with store Sales (Y) as the response variable, and Price (X1) and Promotion (X2) as explanatory variables. Use the Excel regression output below to answer the questions.

Sample size 34, equation: Sales = 5837.5208 - 53.2172price + 3.6131promotion, standard error for promotion 0.6852

Question: An external consultant to TriFoods believes that for every $1 dollar increase in Promotional expenditures, sales will increase by 4.7units. Test the consultant's hypothesis at the 5% significance level. Use both approaches (t crit vs. t calc and p-value vs. ?) to test the hypothesis. (1.5 points)

Answer 1