A linear response model for sales
In the past, the brewery ran several price promotion campaigns that are causing price levels to vary. Now, the marketing manager wants to know to what extent these price changes influenced sales.
You start explaining the effect of changes in PRICE to changes in SALES by using the linear model function lm(). The lm() function requires the specification of the sales - price relation via the formula argument SALES ~ PRICE. The estimated coefficients for the linear sales response model can be obtained by using the function coef().
Cet exercice fait partie du cours
Building Response Models in R
Instructions
- Explain
SALESbyPRICE. Use the functionlm()and assign the result to an object calledlinear.model. - Obtain the model coefficients of the
linear.modelobject by using the functioncoef().
Exercice interactif pratique
Essayez cet exercice en complétant cet exemple de code.
# Explain SALES by PRICE
linear.model <- ___(___ ~ ___, data = sales.data)
# Obtain the model coefficients