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s//canvos unf edufoourses/28281/quizzes/99067/take D Question 24 50 pts Y- Losse

ID: 3060602 • Letter: S

Question

s//canvos unf edufoourses/28281/quizzes/99067/take D Question 24 50 pts Y- Losses1000 as the Response variable (neasured in $1000's per year per office) and uses the following as X variables. N-50 Salr1000 Amount spent in Salary and tatal compensation at each location in $1000 LgComp 1 if there is a large competitor within the office's region located close to the office 0 atherwise (large competitor is far away Market100 expenditures per year at each affice in 100's of dollars And location of the office. Location is a dummy variable Canada -1 if affice is located in Canada -O atherwise Omitted Category is USA Mexico -1 if affice is located in Mexica 0 atherwise 2) Regression Analysis: Loss1000 versus Marketing, LgComp., The regression output is Predictor Coef SE Coef TP Constant 22500 15250 1.48 0.146 Market100 -4000 1062 -3.82 0.000 LBComp 10700 4896 2.19 0.034

Explanation / Answer

As p-value for Salr 1000 variable = 0.002, which is less than 0.05 (level of significance),

we reject H0, conculding that salr 1000 affect losses, as the beta coefficient of this variable is signficantly different from zero.

Answer: Option 3. Reject H0: Salary do affect losses.