+1-415-315-9853

info@mywordsolution.com

Statistics

Estimation of linear regression model

A CEO of a large pharmaceutical company would like to conclude if he should be placing more money allotted in the budget next year for television advertising of a new drug marketed for controlling asthma. He wonders whether there is a strong relationship between the amount of money spent on television advertising for this new drug called XBC and the number of orders received. The manufacturing procedure of this drug is very difficult and requires stability so the CEO would prefer to generate a stable number of orders. The cost of advertising is always an important consideration in the phase I roll-out of a new drug. Data that have been collected over the past 20 months indicate the amount of money spent of television advertising and the number of orders received.

The use of linear regression is a critical tool for a manager's decision-making ability. Carefully read the ex below and try to answer the problems in terms of the problem context. The results are as follows:

 Month Advertising Cost (thousands of dollars) Number of Orders 1 \$68.93 4,902,000 2 72.62 3,893,000 3 79.58 5,299,000 4 58.67 4,130,000 5 69.18 4,367,000 6 70.14 5,111,000 7 83.37 3,923,000 8 68.88 4,935,000 9 82.99 5,276,000 10 75.23 4,654,000 11 81.38 4,598,000 12 52.90 2,967,000 13 61.27 3,999,000 14 79.19 4,345,000 15 80.03 4,934,000 16 78.21 4,653,000 17 83.77 5,625,000 18 62.53 3,978,000 19 88.76 4,999,000 20 72.64 5,834,000

Assume there is a statistically significant relationship. Use the least square method to find the regression equation to predict the advertising costs based on the number of orders received. Please make use of the regression procedure within Excel under Tools > Data Analysis to construct this equation.

Statistics and Probability, Statistics

• Category:- Statistics and Probability
• Reference No.:- M922930

Have any Question?

Related Questions in Statistics and Probability

A project team is studying the downtime cost of a soft

A project team is studying the downtime cost of a soft drink bottling line. Data analysis in thousands of dollars for a three-month period is: Back-Pressure Regulator, 30; Adjust Feed Worn, 15; Jam Copper Head, 6; Lost C ...

Section a creating visual displays of datafor this portion

Section A. Creating Visual Displays of Data. For this portion of the activity, you will export output you created while working in SPSS for Chapter 4 into a Word document. Please read the instructions below to ensure you ...

Supposenbspnbspare a sequence of independent and

Suppose   are a sequence of independent and exponentially distributed random variables with Assuming that is an odd number    for some integer K ): (a) Find the PDF of the median of the sequence. (b) Find the expected va ...

Worldview analysis essayfor this assignment you will write

Worldview Analysis Essay For this assignment, you will write a 2-3-page essay (double-spaced, 1-inch margins) providing examples of how some facet of "process philosophy" has impacted American government and/or society. ...

Six distinct numbers are randomly distributed to players

Six distinct numbers are randomly distributed to players numbered 1 through 6. Whenever two players compare their numbers, the one with the higher one is declared the winner. Initially, players 1 and 2 compare their numb ...

In order to save costs a firm issued a guideline that fax

In order to save costs, a firm issued a guideline that fax transmissions of 10 pages or more should be sent by 2-day mail instead. Exceptions are allowed but they want the average to be 10 or below. The firm examined 35 ...

Letnbsp x be a gaussian random variable and letnbsp ynbsp

Let  X be a Gaussian random variable and let  Y  be a Bernoulli random variable with Pr(Y=1) = p and Pr (Y=-1)= 1-p. If X and Y are independent, find the PDF of Z=XY.  Under what conditions is Z  a Gaussian random variab ...

In a game of blackjack the player and the dealer are both

In a game of blackjack, the player and the dealer are both dealt two cards. One of the dealer's cards is dealt face up so that the player gets to see it. Suppose you (as a player) are dealt a 10 and a 6 and you observe t ...

A random variable x has a gaussian pdf with mean 5 and unit

A random variable, X, has a Gaussian PDF with mean 5 and unit variance. We measure 10 independent samples of the random variable. (a) Determine the expected value of the sample mean. (b) Determine the variance of the sam ...

Letnbspnbspbe a sequence of iid zero-mean gaussian random

Let   be a sequence of IID zero-mean Gaussian random variables with variance   a) Write a MATLAB program to generate the process (b) Estimate the mean function of this process by generating a large number of realizations ...

• 13,132 Experts

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate