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Observations are taken on sales of a certain mountain bike in 30 sporting goods

ID: 3364917 • Letter: O

Question

Observations are taken on sales of a certain mountain bike in 30 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).

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.)

   

  

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.)

     

Observations are taken on sales of a certain mountain bike in 30 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).

Explanation / Answer

for test statistic =SE/coefficient ; and degree of freedom =n-p =30-4=26

therefore

b-1) critical value =2.779

b-2) Only CompetingAds differs significantly from zero.

Only Price differs significantly from zero.

Predictor Coefficient SE      tcalc      p-value   Intercept 1,238.30 329.7 3.756 0.0009   FloorSpace 11.221 1.99 5.639 0.0000   Competing Ads -6.731 3.989 -1.687 0.1035   Price -0.14013 0.08743 -1.603 0.1211