2.

Regression

Variables Entered/Removeda Model Variables Entered 1 radio, promo, flyer

b

Variables Removed .

Method

Enter

a. Dependent Variable: sales b. All requested variables entered.

Model Summary Model R R Square Adjusted R Square 1 .883a .779 .719 Std. Error of the Estimate 4.15060

a. Predictors: (Constant), radio, promo, flyer

ANOVAa Model 1 Regression Residual Total Sum of Squares 669.111 189.502 858.613 df 3 11 14 Mean Square 223.037 17.227 F 12.947 Sig. .001b

a. Dependent Variable: sales b. Predictors: (Constant), radio, promo, flyer

Coefficientsa Model Unstandardized Coefficients Standardized Coefficients B 1 (Constant) promo flyer radio a. Dependent Variable: sales 12.694 2.084 -6.086 -3.714 Std. Error 3.645 .344 2.862 2.680 .896 -.379 -.240 Beta 3.482 6.050 -2.127 -1.386 .057 .193 .005 .000 t Sig.

Regression function Y = 12.694 + 2.084x1 6.086x2 3.714m3x3 x1 Variable for promotion x2 Variable for flyer ( 0 or 1) x3 Variable for radio ( 0 or 1) If we assume 0.05 as the critical value then the coefficient value for variable promotion is not significant but the coefficient values of flyer and radio are significant as they are greater than the critical value.

Interpretation of coefficients:

Promotion has a positive impact on sales, i.e. all other variables being equal with each unit increase in promotion the sales will increase by 2.084. For the variable Type of Promotion the value 6.086 signifies that all other variables being equal if we use Flyer as the type of promotion instead of Newspaper then the sales will be 6.086 units less than the sales units for the Newspaper promotion. Similarly the value 3.714 signifies that that if we use Radio as the type of promotion then the sales will be 3.714 units less than the sales units for the Newspaper promotion. The difference between flyer and newspaper as well as between radio and newspaper are significant as their significance values are greater than 0.05.