Question

Weekly Gross Revenue ($1000s)	Televison Advertising ($1000s)	Newspaper Advertising ($1000s)
96	5	2.5
91	2	2
96	4	2.5
92	2.5	3.5
95	4	4.3
94	3.5	2.3
94	3.5	4.2
95	4	3.5

Use = .01 to test the hypotheses for the model y = 0 + 1x1 + 2x2 + , where

1)computer the F test statistic (to 2 decimals) ____ .

What is P value

what is conclusion

2)Use = .05 to test the significance of 1. Compute the t test statistic (to 2 decimals) _____.

What is P value

what is conclusion

Should x ₁ be dropped from the model?

3)Use = .05 to test the significance of 2. Compute the t test statistic (to 2 decimals

What is P value

what is conclusion

Should x ₁ be dropped from the model?

Answer 1

applying regression:

1)

F test statistic =28.65

P value =0.0018

Conclusion:regression is significant

2) t test statistic =7.48

p value =0.0007

Conclusion: X1 is significant

No x1 should not be dropped from the model

3)

t test statistic =0.10

p value =0.9266

Conclusion: X2 is not significant

x2 should be dropped from the model