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A Regression analysis was applied between sales data (y in $1000s) and advertising expenditure (x in...

  1. A Regression analysis was applied between sales data (y in $1000s) and advertising expenditure (x in $100s) and the estimated regression equation is obtained as ŷ = 12 + 1.8 x.
    Suppose SST=300, SSE=75, sb1 =0.2683 and ?=17

    1. a) Carry out a t-test to see whether the advertising expenditure is significant. Use α = 0.05 and critical value approach to draw your conclusion. Make sure to show all your steps.

    2. b) Carry out an F-test to see whether the advertising expenditure is significant. Use α = 0.05 and critical value approach to draw your conclusion. Make sure to show all your steps.

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orchestra answered 1 year ago
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