Maximize the Profit

Sales = -2.9 (price) + 3000 y=sales y=mx+c

Total revenue = (price)(sales)
Cost = 10(Sales) + 5000 x=proce y=-2.9(x)+3000

21.77 Price $690 1000 =-2.9(price)+3000

Sales 1000 Sales = -2.9(Price)+3000
Total Cost $15,000 Total Cost = 10*Sales+5000
8 Cost per unit $15 Cost per Unit = Total cost /Sales
10000 Profit $674,655 Profit = (Price-Cost per unit)*Sales

Assume you want to achieve a sales of 1000 units

9(price)+3000
9(Price)+3000
= 10*Sales+5000
Unit = Total cost /Sales
rice-Cost per unit)*Sales
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.93395
R Square 0.872263
Adjusted R 0.850974
Standard E 118.1824
Observatio 15

ANOVA
df SS MS F Significance F
Regression 2 1144505 572252.5 40.97153 4.344E-06
Residual 12 167604.9 13967.08
Total 14 1312110

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 3092.883 200.1704 15.45125 2.768E-09 2656.75 3529.017 2656.75 3529.017
Price -142.5484 17.15281 -8.3105 2.541E-06 -179.9212 -105.1757 -179.9212 -105.1757
Ads Budget 0.102257 0.036723 2.784556 0.01651 0.022245 0.18227 0.022245 0.18227
SUMMARY OUTPUT

Regression Statistics Price

Multiple R 0.93395
2000
R Square 0.872263 1500
Adjusted R 0.850974 1000

Sales
Standard E 118.1824 500
Observatio 15 0
.0 0
0. 12.
0
ANOVA $8 $1 $ $
df SS MS F Significance F
Regression 2 1144505 572252.5 40.97153 4.344E-06
Residual 12 167604.9 13967.08
Total 14 1312110

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 3092.883 200.1704 15.45125 2.768E-09 2656.75 3529.017 2656.75 3529.017
Price -142.5484 17.15281 -8.3105 2.541E-06 -179.9212 -105.1757 -179.9212 -105.1757
Ads Budget 0.102257 0.036723 2.784556 0.01651 0.022245 0.18227 0.022245 0.18227

RESIDUAL OUTPUT PROBABILITY OUTPUT

Observation
Predicted Sales
Residuals Percentile Sales
1 1108.042 131.9575 3.333333 800
2 1164.118 -214.1176 10 950
3 1444.268 135.732 16.66667 1025
4 1047.606 142.3944 23.33333 1060
5 1484.559 -54.55926 30 1065
6 1627.108 -67.10771 36.66667 1190
7 1156.698 -96.69782 43.33333 1235
8 852.8228 -52.82277 50 1240
9 1826.676 68.32447 56.66667 1430
10 1306.666 168.334 63.33333 1475
11 1586.816 -26.81642 70 1560
12 1199.462 35.53764 76.66667 1560
13 1118.88 -53.87978 83.33333 1580
14 1056.914 -31.91391 90 1645
15 1729.365 -84.36487 96.66667 1895
 Price Line Fit Plot
2000
1500 Ads Budget Line Fit Plot
1000 Sales
Sales

2000
500 1500 Normal Probability Plot
Predicted Sales
0 1000 Sales
Sales

2000
.0 .0 500.0 .0 6.0 8.0 0.0 Predicted Sales
$8 $10 $12 $14 1500 $ 1 $ 1 $ 2
0 Price1000
Sales

0 1000500 2000 3000 4000 5000

0Ads Budget
0 20 40 60 80 100 120
Sample Percentile
Sales Prediction with Multiple Regression Analysis
Sales Promotion Data
Ads Budget
Week Price Predicted Sales
(In USD 1K)
1 $15.0 1500 1,108
2 $16.4 4000 1,164
3 $13.0 2000 1,444
4 $16.5 3000 1,048
5 $12.0 1000 1,485
6 $11.0 1000 1,627
7 $14.3 1000 1,157
8 $18.2 3465 853
9 $9.6 1000 1,827
10 $15.4 4000 1,307
11 $12.0 2000 1,587
12 $14.0 1000 1,199
13 $16.0 3000 1,119
14 $15.0 1000 1,057
15 $11.0 2000 1,729
ultiple Regression Analysis

Regression Equation
Sales = -142.54(Price)+ 0.10(Ads)+3092

Intercept 3092.88348825938
Price -142.54844931549
Ads Budget0.10225716010895
ssion Equation
0(Ads)+3092
 Sales Promotion Data
Week Price Ads Budget Sales
1 $15.0 1500 1240
2 $16.4 4000 950
3 $13.0 2000 1580
4 $16.5 3000 1190
5 $12.0 1000 1430
6 $11.0 1000 1560
7 $14.3 1000 1060
8 $18.2 3465 800
9 $9.6 1000 1895
10 $15.4 4000 1475
11 $12.0 2000 1560
12 $14.0 1000 1235
13 $16.0 3000 1065
14 $15.0 1000 1025
15 $11.0 2000 1645

Cost Price per unit $9

Minimum Profit $4,000
Maximum Ads Budget $10,000
Minimum Ads Budget $1,000

Sales = -142xPrice + 0.10xAd+3092

 SUMMARY OUTPUT

Regression Statistics
Multiple R 0.933950245191171
R Square 0.872263060492648
Adjusted R Square 0.850973570574756
Standard Error 118.182385777588
Observations 15

ANOVA
df SS MS F Significance F
Regression 2 1144505.0843 572252.54215 40.9715340225 4.344092E-06
Residual 12 167604.915697 13967.076308
Total 14 1312110

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 3092.88348825938 200.170421855 15.451251287 2.76788042E-09 2656.749605
Price -142.548449315493 17.1528116658 -8.310500464 2.54069107E-06 -179.9212154
Ads Budget 0.102257160108945 0.03672296124 2.7845564917 0.01651033912 0.022244701

Maximize Sales
Price Ad Bud Sales Profit
18.23 10000 1516.8210315 $4,000.00
 Upper 95% Lower 95.0% Upper 95.0%
3529.0173715 2656.749605 3529.0173715
-105.1756832 -179.9212154 -105.1756832
0.1822696192 0.022244701 0.1822696192
 Sales Promotion Data
Ads
Week Price Sales
Budget
1 $15.0 1500 1240
2 $16.4 4000 950
3 $13.0 2000 1580
4 $16.5 3000 1190
5 $12.0 1000 1430
6 $11.0 1000 1560
7 $14.3 1000 1060
8 $18.2 3465 800
9 $9.6 1000 1895
10 $15.4 4000 1475
11 $12.0 2000 1560
12 $14.0 1000 1235
13 $16.0 3000 1065
14 $15.0 1000 1025
15 $11.0 2000 1645
SUMMARY OUTPUT

Regression Statistics y=mx_c

Multiple R 0.93395024519
R Square 0.87226306049
Adjusted R Square 0.85097357057
Standard Error 118.182385778
Observations 15

ANOVA
df SS MS F Significance F
Regression 2 1144505.0843 572252.5 40.97153 4.344092249851E-06
Residual 12 167604.915697 13967.08
Total 14 1312110

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept 3092.88348826 200.170421855 15.45125 2.768E-09 2656.74960500112 3529.017
Price -142.54844932 17.1528116658 -8.3105 2.541E-06 -179.921215437809 -105.1757
Ads Budget 0.10225716011 0.03672296124 2.784556 0.01651 0.022244701020822 0.18227

RESIDUAL OUTPUT PROBABILITY OUTPUT

Observation Predicted Sales ResidualsStandard Residuals Percentile Sales

1 1108.04248869 131.95751131 1.206021 3.33333333333333 800
2 1164.11755992 -214.11755992 -1.956919 10 950
3 1444.26796738 135.732032624 1.240518 16.6666666666667 1025
4 1047.60555488 142.394445119 1.301409 23.3333333333333 1060
5 1484.55925658 -54.559256582 -0.498642 30 1065
6 1627.1077059 -67.107705898 -0.613328 36.6666666666667 1190
7 1156.69782316 -96.697823157 -0.883766 43.3333333333333 1235
8 852.822770495 -52.822770495 -0.482772 50 1240
9 1826.67553494 68.3244650604 0.624449 56.6666666666667 1430
10 1306.66600924 168.333990763 1.538482 63.3333333333333 1475
11 1586.81641669 -26.816416691 -0.245088 70 1560
12 1199.46235795 35.5376420486 0.324795 76.6666666666667 1560
13 1118.87977954 -53.879779538 -0.492432 83.3333333333333 1580
14 1056.91390864 -31.913908636 -0.291676 90 1645
15 1729.36486601 -84.364866007 -0.77105 96.6666666666667 1895
 Price Residual Plot
200
100

Residuals
0
-100$8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0
-200
-300
Price Ads Budget R
200
Ads Budget Line Fit Plot 100

Residuals
0
2000 -100500 1000 1500 2000
1500 -200
Lower 95.0%
Upper 95.0% 1000 Sales Price Line Fit Plot
Sales

-300
Predicted Sales
2656.75 3529.017 500 2000 Ads B
-179.9212 -105.1757 0 1500
0.022245 0.18227 0 1000 2000 3000 4000 5000 1000 S

Sales
Ads Budget 500 P
0
.0 0 0 0 0 0
0. 1 2. 14. 1 6. 18. 2 0.
0
$8 $1 $ $Price$ $ $

Normal Probability Plot

2000
1500
1000
Sales

500
0
0 20 40 60 80 100 120
Sample Percentile
 Ads Budget Residual Plot
200
100
0
-100500 1000 1500 2000 2500 3000 3500 4000 4500
-200
rice Line Fit Plot
-300
Ads Budget

Sales
Predicted Sales

0 0 0 0 0
2. 14. 1 6. 18. 2 0.
$Price$ $ $