The output of a different regression analysis on the effect of radio advertising spending, television advertising spending and online advertising spending on sales is given below. For this study they explored 3 different types of advertising spending (radio, television and online). They modelled it as y = ao + a1¤1 + azT2 + azT3 . The table below gives the output of this regression analysis. Regression Analysis: Sales versus Spend Analysis of Variance Source DF MS F-Value P-Value Regression dfreg 23991.2 MSR F-val p-val Error dfer 561.7 MSE Total 111 24552.9 How many degrees of freedom does the Error (SSE) have? It is denoted by dferr in the table above.

Use the Financial database from “Excel Databases.xls” on Blackboard.  Use Total Revenues, Total Assets, Return on Equity, Earnings Per Share, Average Yield, and Dividends Per Share to predict the average P/E ratio for a company.  Use Excel to develop the multiple linear regression model.  Assume a 5% level of significance.   Which independent variable is the strongest predictor of the average P/E ratio of a company?     A. Total Revenues B. Average Yield C. Earnings Per Share D.Return on Equity E. Total Assets F.Dividends Per Share   Company Type Total Revenues Total Assets Return on Equity Earnings per Share Average Yield Dividends per Share Average P/E Ratio AFLAC 6 7251 29454 17.1 2.08 0.9 0.22 11.5 Albertson's 4 14690 5219 21.4 2.08 1.6 0.63 19 Allstate 6 20106 80918 20.1 3.56 1 0.36 10.6 Amerada Hess 7 8340 7935 0.2 0.08 1.1 0.6 698.3 American General 6 3362 80620 7.1 2.19 3 1.4 21.2 American Stores 4 19139 8536 12.2 1.01 1.4 0.34 23.5 Amoco 7 36287…

Give an example of how a nonrepresentative sample can severely affect a regression analysis.

One of the biggest changes in higher education in recent years has been the growth of online universities. The Online Education Database is an independent organization whose mission is to build a comprehensive list of the top accredited online colleges. The following table shows the retention rate (%) and the graduation rate (%) for 29 online colleges.a). Use Excel Data Analysis Tool – Regression to get the relationship between the two variables;b). Create a scatter diagram for the two variables and display regression equation and R square on chart, then explain the relationship between the variables;c). Did the estimated regression equation provide a good fit?d). Suppose you were the president of South University. After reviewing the results, would you be able to use the regression result for forecasting.   College RR(%) GR(%) Western International University 7 25 South University 51 25 University of Phoenix 4 28 American InterContinental University 29 32 Franklin…