Question

URLU OSAM MOVIB I ers, Inc., would be to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight was follow Weekly Gross Revenue ($10003) Televison Advertising ($1000s) Newspaper Advertising ($1000s) a. Use 0.01 to test the hypotheses M: B = 0 H, and/or By is not equal to zero for the model y-Bo +1+By+2+ television advertising ($1000s) # newspaper advertising ($1000s) Compute the F test statistic (to 2 decimals). Use Fal What is your conclusion b. Use a 0.06 to test the significance of a compute the test statist What is the p-value? What is your conclusion? Should be dropped from the model? c. Use a 0.05 to test the significance of B. Compute the test statistic (to 2 decimals). Use table What is the p-value?

Answer 1

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.993699
R Square	0.987438
Adjusted R Square	0.982413
Standard Error	0.232417
Observations	8
ANOVA
	df	SS	MS	F	Significance F
Regression	2	21.22991	10.61496	196.5087	1.77E-05
Residual	5	0.270089	0.054018
Total	7	21.5
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	85.42803	0.537028	159.0755	1.86E-10	84.04756	86.8085	84.04756	86.8085
x1	1.642778	0.0836	19.65049	6.3E-06	1.427877	1.857678	1.427877	1.857678
x2	1.067201	0.100127	10.65843	0.000126	0.809815	1.324586	0.809815	1.324586

a)  
F=196.51  
p value <0.01  
model is significant  
  
b)  
t stat =19.65  
p value <0.01  
conclusion:ß 1 is significant  
No,it should not dropped  
  
c)  
t stat=10.66  
p value <0.01  
conclusion:ß2 is significant  
No,it should not dropped