Variability of a price of commodity (oil, coffee, gold, etc) Essay

Variability of a price of commodity (oil, coffee, gold, etc) - Essay Example On the contrary, when the advertising level goes down, the sales also go down as a result. Additionally, the level of competitors’ advertising has a negative effect on sales of an organization (Trehan, & Trehan, 35). The model has a coefficient of determination, R2 = 0.761468 and ANOVA sig-F = 9.57E-14. The t-test p-values, p=5.5E-13, p=2.64E-08, p=1.4E-11 and p=0.023479 for intercept, Newspaper, TV and Competitors advertising respectively. Looking at the four models above, model 4 has the highest coefficient of determination, R2 = 0.761468, followed by model 2, R2 = 0.360276, model 3, R2 = 0.222313 and model 1, R2 = 0.203654. R2 explains the proportion of the dependent variable which is explained by the independent variable(s). Therefore, in model 4, 76.1468% of sales is explained by Newspaper, TV and Competitor’s Advertising (Wang, & Jain, 13). In conclusion, all the models depict some significance in explaining the sales. This implies that all the independent variables in the data are reliable when it comes to estimation of the dependent variable. However, variation in reliability of the models is differentiated by the coefficient of determination despite the fact that the t-test p-values in all models showed significance (p