Question

G H I J K L M N O Weekly Gross Revenue (1000s) Television Advertising ($1000s) Newspaper Advertising ($1000s) SUMMARY OUTPUT 96 1.5 1.5 92 2.5 25 DO VOU AWN 3.3 Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.976822037 0.954181292 0.935853809 0.514395797 23 ma 42 2.5 ANOVA df Predicted Revenue 97.8529365 SS MS Significance F 2 27.55198482 13.77599 52.06287 0.000449 5 1.323015179 0.264603 28.875 5 Regression Residual Total 3.7 7 Coefficients Standard Error Stat P-value Lower 95% Upper 95% Lower 99% Upper 99% Intercept 84.0728761 1.091270533 77.04128 6.98E-09 81.26768 86.87808 79.67272 88.47303 Television Advertising 1.704204085 0.167182626 10.19367 0.000156 1.274447 2.133961 1.0301 2.378308 Newspaper Advertisin 1.421362155 0.249669415 5.692977 0.002332 0.779566 2.063158 0.414659 2.428065

Answer 1

Solution:

a. Use a01 to test the hypotheses for the model y SUMMARY OUTPUT where: Regression Statistics Multiple R R Square Adjusted R Square Standard Eror Observations 0.976822037 Ha Pand/or A0 0.954181292 0.935853809 Compute the Ftest statistic (to 2 decimals). 0.514395797 8 52.06 correct ANOVA What is the p-value? Significance F df MS 2 27.55198432 13.77599 52.06287 0.000449 SS Regression Residual Less than 01 correct 5 1.323015179 0264603 Total 7 28.875 What is your conclusion? Pvalue Lower 95%Upper 95% Lower 99 Upper 99% 1.091270533, 7704128 698E-0 81.26768 8687808 7967272 8847303 Television Adverising 1704204085 0.167182626 10.19367 0000156 1274447 2133961 .0301 2378308 Newspaper Advertisir 1.421362155 0249669415 5.692977 0.002332 0.779566 2063158 0414659 2428065 correct The overall model is significant Coefficients Standard Eror tStat Intercept 840728761 b. Use a 05 to test the significance of . Compute the t test statistic (to 2 decimals). 10.19 What is the p-value? Less than 0.01 What is your conclusion? Significant relationship between television advertising and revenue Correct Should1 be dropped from the model?' No 05 to test the significance of B. Compute the t test statistic (to 2 decimals). c. Use a 5.69 What is the p-value? Less than 0.01 What is your conclusion? Significant relationship between newspaper advertising and revenue Should be dropped from the model? #2 No d. The owner plans to spend (in $1000s) $5 on television advertising and $3.7 on newspaper advertising. What is the expected revenue (in $1000s) for this advertising combination (to the nearest whole number)? $98000 98 (in 1000s)