Imagine you are a marketing director at a large office supply chain. You’ve been asked to analyze sales of your store brand pencils compared to a name brand of pencils. You’ve gathered sales data and performed a linear regression on sales and pricing data for store and name brand pencils. The regression shows a negative coefficient for the store brand pencils and a positive coefficient for the name brand pencils. How would you interpret these results?


Store brand sales are negatively affected by the name brand sales. When the price of the name brand pencils goes up, there will be an increase in sales of the store brand.

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