Final Model (Table 3, model #3) UnitsSold= XXXXXXXXXX253AverageRetailPrice+20.035SalesRep+33.831EndCap+15.033Demo+15.060Demo13+10.353Demo45 R^2= XXXXXXXXXX% of the variation in UnitsSold is explained...

Final Model (Table 3, model #3) UnitsSold=18.635-7.253AverageRetailPrice+20.035SalesRep+33.831EndCap+15.033Demo+15.060Demo13+10.353Demo45 R^2=0.672 67.20% of the variation in UnitsSold is explained by the model. The remaining 32.8% are due to other factors not included which might be non-linear. Variable Coefficient Interpretation Constant 18.635 The constant has no interpretation since price cannot be 0. AverageRetailPrice -7.253 A unit increase in average retail price will decrease weekly sales by 7.253 holding other variables constant. SalesRep 20.035 Having regional sales reps will increase weekly sales by 20.035 holding other variables constant. Endcap 33.831 Participating on the endcap promotion will increase weekly sales by 33.831 holding other variables constant. Demo 15.033 Having a demo on the current week will increase weekly sales by 15.033 holding other variables constant. Demo13 15.06 Having a demo 1-3 weeks ago will increase weekly sales by 15.06 holding other variables constant. Demo45 10.353 Having a demo 4-5 weeks ago will increase weekly sales by 10.353 holding other variables constant. 2. The in-store demo for the current weekboosts weekly sales by 15.033 amounting to $61.74. The effect lasts up to 5 weeks with an increase of 15.06 ($61.85*) units for weeks 1-3afterwards and 10.353 ($42.52*) units for weeks 4-5 afterwards. 3. The placement of the product (end cap displays) boosts weekly sales by 33.831 units amounting to $138.95* on the average. 4. Based on the results obtained, we recommend that GoodBelly should continue with their current promotions (Endcap, Demo) and also assign regional sales representatives (SalesRep) as they all boost the weekly sales. Lastly, we can ignore the natural retailers and fitness centers as they turned out to be insignificant in their number of weekly sales. *price per unit is based on the average retail price of $4.1071 (Table 1). Appendix Table 1. Descriptive statistics of the variables used in the model. Descriptive Statistics Mean Std. Deviation N UnitsSold 253.8207 110.99873 1386 AverageRetailPrice 4.1071 .46383 1386 SalesRep .550 .4977 1386 Endcap .038 .1918 1386 Demo .058 .2347 1386 Demo13 .157 .3635 1386
May 14, 2022
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