Observations are taken on sales of a certain mountain bike in 24 sporting goods

Question

Observations are taken on sales of a certain mountain bike in 24 sporting goods stores. The regression model was Y= total sales (thousands of dollars), X1-display floor space (square meters), X2- competitors' advertising expenditures (thousands of dollars), X3 = advertised price (dollars per unit) (a) Fill in the values in the table given here. (Negative values should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required. Round your t-values to 3 decimal places and p-values to 4 decimal places.) value Predictor Intercept FloorSpace Competing Ads-6.453 Price Coefficient 1,265.1 11.455 SE 343.6 calc 1.54 3.908 0.14956 0.08880 (b-1) What is the critical value of Student's t in Appendix D for a two-tailed test at = 0.01 ? (Round your answer to 3 decimal places.) t-value (b-2) Choose the correct option. Only CompetingAds differs significantly from zero O Only Price differs significantly from zero Only Floorspace differs significantly from zero

Explanation / Answer

a) Intercept tcal = 1265.1/343.6 = 3.682

P value = P(t<-3.682)+P(t>3.682) = 0.0014

Floorspae = 11.455/1.54 = 7.438

P value = P(t<-7.438)+P(t>7.438) = 0.000

Competingads= -6.453/3.908 = -1.651

P value = P(t<-1.651)+P(t>1.651) = 01136

Price = -0.14956/0.08880 = -1.684

P value = P(t<-1.684)+P(t>1.684) = 0.1069

b1) Critical value at 0.01 level is -2.831

b2) only floorspace differ from zero

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