A regression analysis relating a company’s sales, their advertising expenditure, price (per unit), and time (taken...

A regression analysis relating a company’s sales, their advertising expenditure, price (per unit), and time (taken per unit production) resulted in the following output.

Regression Statistics
Multiple R	0.9895
R Square	0.9791
Adjusted R Square	0.9762
Standard Error	232.29
Observations

ANOVA
	df	SS	MS	F	Significance F
Regression	3	53184931.86	17728310.62	328.56	0.0000
Residual	21	1133108.30	53957.54
Total	24	54318040.16

	Coefficients	Standard Error	t Stat	P-value
Intercept	927.23	1229.86	0.75	0.4593
Advertising (x₁)	1.02	3.09	0.33	0.7450
Price (x₂)	15.61	5.62	2.78	0.0112
Time (x₃)	170.53	28.18	6.05	0.0000

a. Predict Sales if Advertising is $4000, Price is $2995.00, and Time is 22 hours.

b. State the null and alternative hypothesis for the overall test of significance.

c. What is the result of the overall test at the ,05 level of significance. How do you know?

d. Which independent variables are significant at the .05 level of significance? How do you know?

e. Provide the 95% confidence interval for the independent variable price.

Expert Solution

orchestra answered 2 years ago

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