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Busstat Chapter 16

Name: Talao, Aimee Coleen O. Section: A-231 Score ____________

Read and understand the problem carefully. ROUND OFF TO FOUR DECIMAL PLACES.

1. A sample of 30 stores in a supermarket chain is randomly selected for a test-market study of Omn iPower
All stores have relatively the same monthly sales volume. Variables included in this study were: sales,
price, in-store promotional expenses, TV, radio, and newspaper advertising expenses (in $000). The table
below shows of the survey.

Sales 4141 5261 5000 3215 1999 987 3652 5102 4238 2831 2103
Price 59 58 58.75 59 59.25 59.95 75 71 70 65 61.75
In-store promotion 120 125 120 120 110 100 120 150 125 130 110
TV 9.5 10 10 8 7.5 7 9.5 10 9 8 8
Radio 11 12 12 10 10 10 11.5 12.5 12 11 10
Sales 4000 5100 4999 3150 2000 1050 4235 2890 5005 1500 985
Price 59.5 60 59 59.5 60 60 58.95 59 58.95 60 59
In-store promotion 130 132 125 120 122 100 115 110 130 100 105
TV 10 10.25 9.95 10 9.95 10 10.5 8.5 12 8.25 8
Radio 10 11 10.25 10.75 10 9.75 9 9 10.5 8 8
Sales 2500 4200 3952 3100 2005 999 1250 1979 2975 4000 3981
Price 59 58 60 59.95 59 60 58 59 59 58.95 58.5
In-store promotion 101 99 102 110 109 99 100 99.5 100 110 101
TV 9 10 9.75 9.5 8 8.5 9 8.95 9.25 10 9.75
Radio 9 10 8 9 8 8 8.5 9 9.75 11 10

Process the data using MS Excel PhStat or Data Analysis tool. Present the regression analysis, ANOVA, and
coefficient tables.

Answer the following questions:

1. What are the correct null and alternative hypothesis?


Ho: There is no significant relationship between the sales and the price, in-store promotional
expenses, TV advertising expenses and radio advertising expenses of the stores in supermarket
chain.

Ha: There is a significant relationship between the sales and the price, in-store promotional
expenses, TV advertising expenses and radio advertising expenses of the stores in supermarket
chain.

2. Based on the result, what is the appropriate conclusion? Discuss your answer
Decision rule: Reject Ho if significant F< 0.05, otherwise do not reject Ho.

Conclusion: Reject Ho; 0.0000 < 0.05

Therefore, there is a significant relationship between the sales and the price, in-store promotional
expenses, TV advertising expenses and radio advertising expenses of the stores in supermarket
chain.

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3. Interpret the coefficient of determination result.
71.20% of the variation of the sales of stores in supermarket chain can be explained by its
interaction with the independent variables which are the price, in-store promotional expenses, TV
advertising expenses and radio advertising expenses. The remaining 28.80% are caused of
influenced by other factors not included in the study.

4. What would be the value of Y for every unit change in X 1?

5. What would be the value of Y for every unit change in X 2?

6. What would be the value of Y for every unit change in X 3?

7. What would be the value of Y for every unit change in X 4?

8. What would be the value of Y if the values of X 1, X2, X3, and X4 are equal to zero?
Y= -7071.8802 + (-43.3716) X1 + (30.4756) X2 + (596.5233) X3 + (389.4468) X4
= -7071.8802 + (-43.3716) 0 + (30.4756) 0 + (596.5233) 0 + (389.4468) 0
= -7071.8802

9. Which linear equation model was developed from the above analysis? Discuss the model you
have developed.

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10. Is the model developed a reliable one? Why or why not? Discuss your answer and support it with
statistics.

11. Which among the independent variables is/are the better predictor/s of the dependent variable?
Discuss your answer and support it with statistics.

12. Which are the independent variables of the study? Which is the dependent variable?
The independent variable in the study are the price, in-store promotional expenses, TV advertising
expenses and radio advertising expenses. On the other hand, the dependent variable is the
monthly sales volume of stores in supermarket chain.

11. What do you recommend based on the results of your analysis? (5-10 sentences)

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