(a) How many observations do you have in the data set? (b) Write down the corresponding regression model (c) Write down the estimated model (d) What's the R square and what does it mean? (e) Suppose you wanted to test whether the 'slopes' are jointly signifi- cantly different than zero? Write down the null hypothesis and the alternative hypothesis. At significance level of 1 per-cent, what do you conclude? (f) What is the estimated effect on sales from increasing the quality level by one unit, while holding fix advertisement investments? (g) What is the estimated effect on sales from decreasing advertisement investments by 2 units (that is 2k AUD). while holding fix quality level? (h) What are the estimated sales revenues of a firm that has quality level 0 and does not invest anything into advertisement? (i) What is the 95 per cent confidence interval of the coefficient estimator of quality level? I (i) Suppose you wanted to test whether investment in advertisement affects sales? What would be the null hypothesis, the test statistic. what would you conclude at the 1 per cent significance level?
(a) How many observations do you have in the data set? (b) Write down the corresponding regression model (c) Write down the estimated model (d) What's the R square and what does it mean? (e) Suppose you wanted to test whether the 'slopes' are jointly signifi- cantly different than zero? Write down the null hypothesis and the alternative hypothesis. At significance level of 1 per-cent, what do you conclude? (f) What is the estimated effect on sales from increasing the quality level by one unit, while holding fix advertisement investments? (g) What is the estimated effect on sales from decreasing advertisement investments by 2 units (that is 2k AUD). while holding fix quality level? (h) What are the estimated sales revenues of a firm that has quality level 0 and does not invest anything into advertisement? (i) What is the 95 per cent confidence interval of the coefficient estimator of quality level? I (i) Suppose you wanted to test whether investment in advertisement affects sales? What would be the null hypothesis, the test statistic. what would you conclude at the 1 per cent significance level?
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy
Problem 6EA
Related questions
Question
Need help with all
Transcribed Image Text:2. Suppose you collect data on the quality level (measured on a continuous
some scale between 0 and 100, where 0 corresponds to the lowest quality
level and 100 to the highest quality level) of firms' product, on firms'
advertisement investments (measured in 1k AUD), and on firms' sales
revenues (measured in 1k AUD). You regress sales revenue on quality
level and on advertisement investments. Here is the Excel output:
SUMMARY OUTPUT
Multiple R
R Square
Regression Statistics
Adjusted R Square
Standard Error
Observations
ANOVA
Regression
Residual
Total
Intercept
Advertisement Investments
Quality Level
0.999485812
0.998971888
0.998878423
1.808545855
df
25
2
22
F
SS
MS
69918.90249 34959.45124 10688 22426
71.95843842 3.27083811
24 69990.86093
Significance F
1.35658E-33
Coefficients Standard Error t Stat
Lower 95%
Upper 95%
P-value
13.7623304 17.17587708 0.801259251 0.431550907 21.8582585 49.3829193
1.450441963 0.434670743 3.33687506 0.00298855 0.548990015 2.35189391
4.963522727 0.034878648 142.308346 4.13434E-34 4.891188838 5.035856616
Transcribed Image Text:(a) How many observations do you have in the data set?
(b) Write down the corresponding regression model
(c) Write down the estimated model
(d) What's the R square and what does it mean?
(e) Suppose you wanted to test whether the 'slopes' are jointly signifi-
cantly different than zero? Write down the null hypothesis and the
alternative hypothesis. At significance level of 1 per-cent, what do
you conclude?
(f) What is the estimated effect on sales from increasing the quality level
by one unit, while holding fix advertisement investments?
(g) What is the estimated effect on sales from decreasing advertisement
investments by 2 units (that is 2k AUD). while holding fix quality
level?
(h) What are the estimated sales revenues of a firm that has quality level
0 and does not invest anything into advertisement?
(i) What is the 95 per cent confidence interval of the coefficient estimator
of quality level?
I
(i) Suppose you wanted to test whether investment in advertisement
affects sales? What would be the null hypothesis, the test statistic.
what would you conclude at the 1 per cent significance level?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning