Global test of hypothesis to find regression coefficients

Reference no: EM1311532

Q1) District manager of Jasons, large discount electronics chain, is investigating why certain stores in her region are doing better than others. She thinks that 3 factors are related to total sales: number of competitors in region, the population in surrounding area, and amount spent on advertising. From her district, consisting of numerous hundred stores, she chooses a random sample of 30 stores. For each store she collected following information.

Y =	total sales last year (in $ thousands).
X₁ =	number of competitors in the region.
X₂ =	population of the region (in millions).
X₃ =	advertising expense (in $ thousands).

Sample data were run on MINITAB, with the following results.

Analysis of variance
SOURCE	DF	SS	MS
Regression	3	3050.00	1016.67
Error	26	2200.00	84.62
Total	29	5250.00	Â
Predictor	Coef	StDev	t-ratio
Constant	14.00	7.00	2.00
X 1	-1.00	0.70	-1.43
X 2	30.00	5.20	5.77
X 3	0.20	0.08

a) Carry out the global test of hypothesis to find out whether any of the regression coefficients are not equal to 0. Use.05 level of significance.

b) Carry out tests of hypotheses to find out which of independent variables have important regression coefficients. Which variables would you consider eliminating? Use the .05 significance level.

Reference no: EM1311532

Questions Cloud

Rank the objects on the basis of their temperature : A 20.00 kg wood ball hangs from the 1.10 long wires. The maximum tension the wire can withstand without breaking is 600 N. A 0.710 kg projectile travelling horizontally hits and embeds itself in the wood ball. What is the largest speed this projectil..

Find the amount of time shell is in motion : A 5.00--long ladder has mass 12.5 kg and is leaning against a frictionless wall, making a 64 degree angle with the horizontal. If the coefficient of friction between the ladder and ground is 0.42, what is the mass of the heaviest person who can safel..

Describe about investments : Describe about investments and stock returns are independent-one stock in increasing in price has no effect on the prices of the other stocks

Determine the relavant costs : The increase in volume will be large enough to require increases in fixed selling expenses and in general administrative overhead, but not in fixed manufacturing overhead.

Global test of hypothesis to find regression coefficients : Carry out the global test of hypothesis to find out whether any of the regression coefficients are not equal to 0. Use.05 level of significance.

Find the equilibrium readings of both scales : A 76 g, 40-{rm cm}-long rod hangs vertically on a frictionless, horizontal axle passing through its center. A 10 g ball of clay travelling horizontally at 2.70 m/s hits and sticks to the very bottom tip of the rod. To what maximum angle, measured fro..

Entering data into spss : Enter data into SPSS (use two columns: one for coding {0, 1, 2, 3, 4, 5} and one for DV)

Computation of exchange rate : Suppose the CFO of a German corporation with surplus cash flow has 1 million Euros to invest. Suppose that interest rates on 1-year CD deposits in U.S. banks

How to approach a outline and complete the task in a project : A sequence of events on approach to outline and complete different task in a specific project. Geology and Research Assignment

User Account

All Pages