Explanation of multiple regression

Reference no: EM1376355

Qty. Price Advertise Distance
180 475 1100 120
590 400 2400 65
430 450 1500 50
250 550 3100 75
275 575 3400 45
720 375 2200 20
660 375 1200 50
490 450 2400 75
700 400 2200 45
210 500 1000 55

A company's marketing dept. obtained information from 10 of the firm's outlets. The information consists of the qty. and price of the products sold at each outlet from the distribution center. Using the data assume the underlying demand relationship is linear function of price. Run a regression to obtain the least squares estimate of the demand (make sure you include the constant term). Provide a detailed economic interpretation of the regression outputs, including an estimate of the optimal price that each regression generates. Which regression is recommended for forecasting future sales and price?

Reference no: EM1376355

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