[Regression] PSG conducted a regression andysis of shampoo sales on t.pdf

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PSG conducted a regression analysis to examine the relationship between shampoo sales and different types of advertising expenditures. The analysis estimated coefficients for national, local, and digital advertising, as well as control variables for Thanksgiving and Christmas, based on data from the offseason, Thanksgiving, and Christmas periods.

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[Regression] PSG conducted a regression andysis 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
offseason. 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 iThanksgiving.
Christmas) ( 5pts ) (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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