A regional distributor of NIKE shoes is in the process of analyzing the factors that influence the demand for the NIKE brand. The distributor hired an economist to conduct a study on the demand for this product. The economist collected quarterly time series data from 1986Q1 to 1991Q4 on the following variables: SALES Sales of NIKE shoes RPDI Real personal disposal income CONF Consumer confidence index D2 Dummy variable for quarter 2 D3 Dummy variable for quarter 3 D4 Dummy variable for quarter 4 Ordinary Least Squares was applied using sales as the dependent variable and real personal disposal income, consumer confidence index, dummy variable for quarter 2, dummy variable for quarter 3, and dummy variable for quarter 4 as independent variables. The table below shows the OLS output. Model 1: OLS, using observations 1986:1-1991:4 (T = 24) Dependent variable: SALES Coefficient Std. Error t-ratio p-value const −139.452 61.8421 −2.255 0.0368 ** RPDI 1.56286 0.438492 3.564 0.0022 *** CONF 0.256247 0.100472 2.550 0.0201 ** D2 15.4848 4.93902 3.135 0.0057 *** D3 27.3810 4.92702 5.557 <0.0001 *** D4 59.3862 5.35946 11.08 <0.0001 *** Mean dependent var 97.75308 S.D. dependent var 22.54303 Sum squared resid 1305.034 S.E. of regression 8.514804 R-squared 0.888347 Adjusted R-squared 0.857333 F(5, 18) 28.64284 P-value(F) 5.68e-08 Log-likelihood −82.00569 Akaike criterion 176.0114 Schwarz criterion 183.0797 Hannan-Quinn 177.8866 rho 0.331680 Durbin-Watson 1.229094 Test the statistical significance of the overall regression model, using α = 2.5%.

A regional distributor of NIKE shoes is in the process of analyzing the factors that influence the
demand for the NIKE brand. The distributor hired an economist to conduct a study on the demand
for this product. The economist collected quarterly time series data from 1986Q1 to 1991Q4 on the
following variables:
SALES Sales of NIKE shoes
RPDI Real personal disposal income
CONF Consumer confidence index
D2 Dummy variable for quarter 2
D3 Dummy variable for quarter 3
D4 Dummy variable for quarter 4
Ordinary Least Squares was applied using sales as the dependent variable and real personal
disposal income, consumer confidence index, dummy variable for quarter 2, dummy variable for
quarter 3, and dummy variable for quarter 4 as independent variables. The table below shows the
OLS output.
Model 1: OLS, using observations 1986:1-1991:4 (T = 24)
Dependent variable: SALES
Coefficient Std. Error t-ratio p-value
const −139.452 61.8421 −2.255 0.0368 **
RPDI 1.56286 0.438492 3.564 0.0022 ***
CONF 0.256247 0.100472 2.550 0.0201 **
D2 15.4848 4.93902 3.135 0.0057 ***
D3 27.3810 4.92702 5.557 <0.0001 ***
D4 59.3862 5.35946 11.08 <0.0001 ***
Mean dependent var 97.75308 S.D. dependent var 22.54303
Sum squared resid 1305.034 S.E. of regression 8.514804
R-squared 0.888347 Adjusted R-squared 0.857333
F(5, 18) 28.64284 P-value(F) 5.68e-08
Log-likelihood −82.00569 Akaike criterion 176.0114
Schwarz criterion 183.0797 Hannan-Quinn 177.8866
rho 0.331680 Durbin-Watson 1.229094

Test the statistical significance of the overall regression model, using α = 2.5%.