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Multivariate analysis

Using the data provided, perform the following analysis:

• Determine the explanatory and response variables.
• Run a multivariate regression analysis on all threevariables.

Interpret the results by answering the following questions:

• What is the calculated correlation coefficient? Do the salesfigures correlate with the marketing expenditure and price?
• Comment on the coefficient of determination. What percentage ofthe response data can be explained by the explanatoryvariables?
• Determine the multiple regression line equation in theform:

sales^ = (intercept) +(coefficient)× marketing + (coefficient)×price

• Using the regression equation formulated, what is the amount ofexpected sales (in pounds), if the price is set at £3.50 and theamount spent on marketing is £300?
• Interpret the variables in the regression equation. What impactdoes each of the factors (marketing and price) have on the salesfigures?

Total sales	Marketing	Price
£    1,500.00	£       330.00	£          3.50
£    1,354.00	£       270.00	£          3.75
£    1,489.00	£       320.00	£          3.50
£    1,347.00	£       280.00	£          3.90
£    1,321.00	£       260.00	£          4.00
£    1,245.00	£       240.00	£          4.20
£    1,589.00	£       325.00	£          3.50
£    1,632.00	£       340.00	£          3.30
£    1,485.00	£       320.00	£          3.40
£    1,420.00	£       300.00	£          3.70