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The Multiple Regression Model

The Multiple Regression Model. Hill et al Chapter 7. A model of the effects of advertising on revenue.  2 = the change in tr ($1000) when p is increased by one unit ($1), and a is held constant. The assumptions of the model. The estimators. Sampling properties.

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The Multiple Regression Model

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  1. The Multiple Regression Model Hill et al Chapter 7

  2. A model of the effects of advertising on revenue. 2= the change in tr ($1000) when p is increased by one unit ($1), and a is held constant

  3. The assumptions of the model

  4. The estimators

  5. Sampling properties

  6. Interval estimates and significance tests

  7. Measuring Goodness of Fit y x y x

  8. Example: Measuring Advertising Effectiveness • tr: revenue (thousand $) • p: price ($) • a: advertising (thousand $) • conclusions • demand is elastic • advertising has a positive effect on sales

  9. Interval Estimates and tests of significance tc = 2.01 A 95% interval estimate for 2 is given by

  10. Does advertising break-even?

  11. Goodness of fit

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