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In: Math

Consider the following regression output with Sunday circulation of newspapers as dependent variable and Daily circulation...

Consider the following regression output with Sunday circulation of newspapers as dependent variable and Daily circulation as independent variable. Both Sunday and Daily circulation and measured in thousands of copies.

Dependent Variable: Sunday
Variable:

Intercept

Daily
Coefficient

24.763

1.351
Std. Error

46.99

0.09
t Stat

0.527

14.532
P-value

0.602

0.000

Given the output above choose whether the following statement is TRUE or FALSE.

Question 1
This regression is bad because we are only 39.8% confident that the intercept coefficient is not 0.

a: TRUE

b: FALSE

Question 2 ( it part 2 of the first queestion)
Consider again the regression output of Question 1. How much confidence do you have that Daily increase of two thousand copies will result in Sunday increase of at least 2340 copies?

a: less than 50% confidence
b: at least 95% confidence but less than 99.7% confidence
c: at least 99.7% confidence

d: I do not have enough information to determine the confidence.

Solutions

Expert Solution

Consider the following regression output with Sunday circulation of newspapers as dependent variable and Daily circulation as independent variable. Both Sunday and Daily circulation and measured in thousands of copies.

Dependent Variable: Sunday

Variable:

Intercept

Daily

Coefficient

24.763

1.351

Std. Error

46.99

0.09

t Stat

0.527

14.532

P-value

0.602

0.000

Given the output above choose whether the following statement is TRUE or FALSE.

Question 1
This regression is bad because we are only 39.8% confident that the intercept coefficient is not 0.

a: TRUE

Answer:b: FALSE

intercept coefficient tells that when there is no daily circulation, the Sunday circulation is 24763.

Question 2 ( it part 2 of the first question)
Consider again the regression output of Question 1. How much confidence do you have that Daily increase of two thousand copies will result in Sunday increase of at least 2340 copies?

a: less than 50% confidence

b: at least 95% confidence but less than 99.7% confidence

Answer: c: at least 99.7% confidence

d: I do not have enough information to determine the confidence.

The regression coefficient is significant at 0.000 which is < 0.001 level of significance.

Daily increase of two thousand copies will result in Sunday increase of 2000*1.351 =2702 copies.

milcah answered 8 months ago
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