Textbook Multiple Regression Example BusStat 208 A publishing company in New Yor
ID: 3311596 • Letter: T
Question
Textbook Multiple Regression Example BusStat 208 A publishing company in New York is attempting to develop a model that it can use to help predict textbook sales for books it is considering for future publication. Tho marketing department has co collected data on several variables from a random sample of 15 books. These data and additional information are given below Volumes Sold Budget (in 000's Age of 176 296 483 811 411 12 15 VolumesS Sold Y (in 000's) Paes Books Competing Budget (in Age of 000's) Author Volumes Sold Y (in 000's Pages 0.6221 Competing Books Advertising Budget (in 000's) 0.355 0.501 0.620 0.091 0.384 485 -0.019 0113 0.265 Age of Author X4Explanation / Answer
(a)
Correlations
volume
pages
books
budget
age
volume
Pearson Correlation
1
.616*
.355
.605*
.495
Sig. (2-tailed)
.014
.194
.017
.061
N
15
15
15
15
15
pages
Pearson Correlation
.616*
1
.501
.091
-.019
Sig. (2-tailed)
.014
.057
.746
.947
N
15
15
15
15
15
books
Pearson Correlation
.355
.501
1
.384
-.113
Sig. (2-tailed)
.194
.057
.158
.687
N
15
15
15
15
15
budget
Pearson Correlation
.605*
.091
.384
1
.265
Sig. (2-tailed)
.017
.746
.158
.340
N
15
15
15
15
15
age
Pearson Correlation
.495
-.019
-.113
.265
1
Sig. (2-tailed)
.061
.947
.687
.340
N
15
15
15
15
15
*. Correlation is significant at the 0.05 level (2-tailed).
Hence, the positive correlation between pages and volumes sold is statistically significant at 0.05 significance level.
(b)
Completing the ANOVA table:
ANOVAa
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
30355.205
4
7588.801
12.157
.001b
Residual
6242.528
10
624.253
Total
36597.733
14
a. Dependent Variable: volume
b. Predictors: (Constant), age, pages, budget, books
Thus, the overall model is significant at 0.05 level since the p-value is less than 0.05
(c)
Model Summary
Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
.911a
.829
.761
24.98505
a. Predictors: (Constant), age, pages, budget, books
The R-squared value is 0.829
Hence, 82.9% of the total variation in the books sales can be explained by the independent variables.
(d)
If no of pages is 300, competing books is 8, advertising budget is 40,000 and age of author is 57,
then the expected volumes of book sales is:
(- 125.308 + 0.176 * 300 - 1.574 * 8 +1.592 * 40 +1.614 * 57) * 1000
= 70.578 * 1000
= 70578
Correlations
volume
pages
books
budget
age
volume
Pearson Correlation
1
.616*
.355
.605*
.495
Sig. (2-tailed)
.014
.194
.017
.061
N
15
15
15
15
15
pages
Pearson Correlation
.616*
1
.501
.091
-.019
Sig. (2-tailed)
.014
.057
.746
.947
N
15
15
15
15
15
books
Pearson Correlation
.355
.501
1
.384
-.113
Sig. (2-tailed)
.194
.057
.158
.687
N
15
15
15
15
15
budget
Pearson Correlation
.605*
.091
.384
1
.265
Sig. (2-tailed)
.017
.746
.158
.340
N
15
15
15
15
15
age
Pearson Correlation
.495
-.019
-.113
.265
1
Sig. (2-tailed)
.061
.947
.687
.340
N
15
15
15
15
15
*. Correlation is significant at the 0.05 level (2-tailed).
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