Respuesta :
Answer:
a. This implies the sales of sneaker increase when the color of the sneaker is red and Advertising expenses increase.
This implies that the sneaker sales increases by $533,024 when the sneaker color is red.
Explanation:
a. How would you interpret the regression model?
The estimated regression model given in the question is as follows:
Sales = 631,085 + 533,024(Red) + 50.5(Advertising) ................ (1)
From equation (1), Sales is the estimated dependent variables; 631,085 is the estimated constant; 533,024 is the estimated coefficient of the red color; and 50.5 is the estimated coefficient of the advertising expenditures
The interpretation of the above is that sneaker color and the advertising expenditures have positive effect on the sales of sneaker. This implies the sales of sneaker increase when the color of the sneaker is red and Advertising expenses increase.
b. How would you interpret the coefficient for red sneakers?
From equation (1) in part a above, the estimated coefficient of the sneaker color is 533,024.
Since the sign in front of it is positive, this implies that the sneaker sales increases by $533,024 when the sneaker color is red.
Regression equation are used to model the mathematical relationship between an independent and dependent variable. Hence, the interpretation of the model goes thus :
- There is a positive relationship between the dependent variable(sales) and the independent variables (Red sneakers aan advertising)
- Sales realized on sneakers increases by $533,024 when sneaker color is Red.
The coefficients of the independent variable gives information about the kind of association between the variables.
Positive Coefficient values indicate, positive association while negative Coefficient depicts negative relationship.
The values of the coefficient also denotes the numerical change experienced by the dependent variable as changes is being made to the independent variable.
Learn more :https://brainly.com/question/18405415
