Home » Cost and Economics in Pricing Strategy » 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 in Excel. How would you begin to interpret the results if there is a negative coefficient for the store brand pencils and a positive coefficient for the name brand pencils?

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 in Excel. How would you begin to interpret the results if there is a negative coefficient for the store brand pencils and a positive coefficient for the name brand pencils?

Question 2

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 in Excel. How would you begin to interpret the results if there is a negative coefficient for the store brand pencils and a positive coefficient for the name brand pencils?

1 / 1 point

When there is an increase in the price of the name brand, sales of the store brand will go down.

The sales of the store brand are affected negatively by sales of the name brand.

When there is a decrease in the price of the name brand, sales of the store brand will go up.

You’ll need to know the standard error in order to make any predictions.

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

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