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[Regression] P&G conducted a regression analysis of shampoo sales on their national, local,
and digital advertising expenditures. Response variable is shampoo sales in million dollars, and
explanatory variables are the ad spends in million dollars. The dataset is observed during off-
season, Thanksgiving, and Christmas. Below are the estimated coefficients. (a) Interpret the
meaning of three advertising coefficients (national advertising. local advertising, and digital
advertising) (10 pts) (b) Interpret the meaning of two control variables (Thanksgiving.
Christmas) (5 pts) (c) Explain the role of control variables. What happens if we omit the control
variables in running a regression analysis? (10 pts)

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[Regression] P&G conducted a regression analysis of shampoo sales on.pdf

  • 1. [Regression] P&G conducted a regression analysis of shampoo sales on their national, local, and digital advertising expenditures. Response variable is shampoo sales in million dollars, and explanatory variables are the ad spends in million dollars. The dataset is observed during off- season, Thanksgiving, and Christmas. Below are the estimated coefficients. (a) Interpret the meaning of three advertising coefficients (national advertising. local advertising, and digital advertising) (10 pts) (b) Interpret the meaning of two control variables (Thanksgiving. Christmas) (5 pts) (c) Explain the role of control variables. What happens if we omit the control variables in running a regression analysis? (10 pts)