Reference no: EM132162754
You work for Segway, in the sales division of the Drift W1 (which are basically motorized roller skates). You've traveled into the future (since they aren't available yet) and collected data on monthly sales (S) and the price of the Drift W1 (P), both in dollars, as well as the daily average summer temperature in your most popular market (T) in degrees Fahrenheit. You estimate the following regression model: S = a + bP + cT. In your regressions, you usually look for a 10%-or-better level of confidence.
a. What signs do you expect for a, b, and c?
b. Your regression yields the following results:
Adjusted R square - .0820
Independent Variables Coefficients Standard Error t-Stat p-value
Intercept 1936 309 6.259 0.00153
P -4.71 0.81 -5.816 0.00212
T 6.57 3.50 1.879 0.11902
Interpret what these coefficients mean.
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