Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for
their line of stereo speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main
drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market. Pertinent
information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow.
YEAR
PRICE S/UNIT
283
209
213
220
209
MONO
UNIT SALES
(THOUSANDS)
398
698
898
1,384
1,163
1,195
898
1,200
982
1,235
875
811
ADVERTISING
($880)
621
821
1,200
1,405
1,210
1,384
875
1,200
691
875
691
691
209
aces
220
209
230
213
216
243
a. Perform a regression analysis based on these data using Excel. (Negative values should be indicated by a minus sign. Round your
answers to 4 decimal places.)
y bar =
+
Price
+
advertising