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 y x 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 t c = 2.01 A 95% interval estimate for  2 is given by

10. Does advertising break-even?

11. Goodness of fit