Osm 202 Statistics homework using ( megastat )

Take-home Activity 8 Name

Enterprise Industries has observed the historical data concerning y (demand for Fresh liquid laundry detergent), x1 (the price of Fresh), x2 (the average industry price of competitors ' similar detergents), and x3 (Enterprise Industries' advertising expenditure for Fresh).

1- Run the regression analysis (use MegaStat, take a snapshot and put it here)

2- Answer below questions (circle the right verb: increases or decreases?)

· For every $1 increase in price of fresh detergent, the average demand increases/decreases by ________ units.

· For every $1 increase in price of competitors ' similar detergents, the average demand increases/decreases by ________ units.

· For every $1 increase in advertising expenditure for Fresh, the average demand increases/decreases by ________ units.

3- Write the equation of your multiple regression estimation?

4- Answer below questions by the help of individual scatter plots for Y vs. each X:

· What proportion of “variation in demand” can be explained by “variation in price of fresh detergent x1” alone?

· What proportion of “variation in demand” can be explained by “variation in price of competitors ' similar detergent x2” alone?

· What proportion of “variation in demand” can be explained by “variation in Enterprise Industries' advertising expenditure for Fresh x3” alone?

5- What proportion of “variation in demand” can be explained by “Variation in x1, x2 and x3” combined? (Use MegaStat to answer this question)

6- Using the R2 reported in Megastat, calculate the adjusted R2, using the formula provided in the slides.

7- What is your point estimation of average demand when x1= $3.7, x2= $3.8 and x3=$7.

2