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###### Math · Statistics And Probability
Question details

Question B:

Consider the following MS Excel partial output for the independent variable monthly Promo Expenditure ‘X’ (in 100s of dollars) and the monthly Demand ‘Y’ for a product’ (in 1000s of dollars)

Regression Analysis: Demand (in thousands of $) versus Promo Exp (in hundreds of$)

 SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error of the Estimate 6.03 Observations 8.00 ANOVA df SS MS F Regression 7181.54 Residual/ Error Total 7 7399.50 Coefficients SE Coef/ Standard Error Intercept 96.27 5.84 Promo Exp(X)/ Estimated slope 13.02 0.93

1) What is the slope(b1) and what is its statistical interpretation ? (10 points)

2) Perform the test of hypothesis ( t-test) on the following, and state your statistical decision. Use α = 0.05. Please show all the relevant calculations.

(10 points)

H0 : β1 = 0

H1 : β1 ≠ 0

3) Perform the test of hypothesis (F-test) on the following, and state your statistical decision. Use α = 0.05. Please show all the relevant calculations.

(10 points)

H0 : β1 = 0

H1 : β1 ≠ 0

4) What is the coefficient of determination (r2) i.e., percentage of variability in Demand explained by the independent variable Promo Expenditure? Please show all the relevant calculations. (10 points)

5) What is the value of the standard error of the estimate (SYX) in dollars (10 points)?