Observations are taken on sales of a certain mountain bike in 25 sporting goods

Question

Observations are taken on sales of a certain mountain bike in 25 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 "0" wherever required. Round your t-values to 3 decimal places and p-values to 4 decimal places.)

(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 Price differs significantly from zero.

Only FloorSpace differs significantly from zero.

Only CompetingAds differs significantly from zero.

Predictor Coefficient SE Tcalc p-value Intercept 1239.1 346.1 Floor Space 11.155 1.85 Competing Ads -6.580 3.971 Price -0.14142 0.08367

Explanation / Answer

as tcalc =coefficient/SE

therefore

for a  two-tailed test at = 0.01 ; crtiical t value =2.831

b-2)Only FloorSpace differs significantly from zero.

Predictor Coefficient SE Tcalc p-value Intercept 1239.1 346.1 3.580 0.0018 Floor Space 11.155 1.85 6.030 0.0000 Competing Ads -6.58 3.971 -1.657 0.1124 Price -0.14142 0.08367 -1.690 0.1058

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.