Question

[Marketing]

Аавьса Norm: 2- AA EE _{Total 40 marks) Question 1 This question has two parts - A and B. Answer BOTH parts. ABBEY is a company that specializes in making fashionable clothes for plus-sized people. A survey was performed for ABBEY, and a simple linear regression analysis was run on some of the data or interest in this analysis was the possible relationship between self- esteem (independent variable) and Intention to purchase ABBY clothes (dependent variable). They were measured on a 7-point scale ranging from very low to very high. The SPSS output is displayed below in two parts, part A and B: Part A) Model Summary Model R .766 R Square Adjusted R Square 5 86 .577 a. Predictors: (Constant), Self-esteem Std. Error of the Estimate 1.184 Mean Square 85.454 1.403 F 60.914 ANOVA Sum of Model Squares Df Regression 85.454 1 Residual 60.323 4 3 Total 145.778 44 a. Dependent Variable: Intention to purchase b. Predictors: (Constant), Self-esteem (a= 0.05) Sig. .000 2020 April 11 MARK 205 Final Exam PSB Academy Trimester 1, 2020

Answer 1

If we assume that the model is :

y = Bo + Bir +

where y is intention to purchase ABBY and x is self esteem

Here as we can see the above output :

1)

Hypothesis for testing that if the model is significant or not

HO: B1 = 0

H1:31 0

Then test statistic corresponding to this test is given by F ratio which is given above in the second table (ANOVA table)

here

F statistic = 60.914 ~ F1, 43

And corresponding P value is also given in the table

P value = .000 <

g= 0,05

which implies that here we have enough evidence to reject null hypothesis

i.e., model is significant.

2)

R square measures the variation explained by the dependent variable on independent variable

As we can see that R square is 0.586

which implies that 58.6 % of variation is explaied by self esteem variable.

Another part :

1)

As we can see that the model output table 3

So slope is 0.688

and intercept is 1.348

So the model is

$\hat{y} = 1.348 + 0.688x$

where y is intention to purchase ABBY and x is self esteem

As we can see that in the last table that p value for both intercept and slope is less than 0.05

which implies both of them are statistically significant.

This regression output is appropriate because we have tested and the whole model and coefficients are significant.

Further we can also see that nearly 58.6 % of variation is explained by the model.

2)

We can Mention that self esteem is important variable in finding intention to purchase

since we can also add more variables in the model to increase the R square so the variation explaied in the model can be increased.

Further we can also say that if we increase the self esteem by 1 unit then intention to purchase will increase by 0.688 units.

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