Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Ak

Question

Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Akiko is concerned that the weak economic environment has hampered foot traffic in her area, thus causing a dramatic decline in sales. In order to offset the decline in sales, she has pursued a strong advertising campaign. She believes advertising expenditures have a positive influence on sales. To support her claim, Akiko estimates a regression model as Sales = 0 + 1Advertising + 2Unemployment + . A portion of the regression results follows.

Find the value of the appropriate test statistic. (Round your answer to 3 decimal places.)

Find the p-value. (Round your answer to 4 decimal places.)

  ANOVA df SS MS F Significance F   Regression 2    72.6374 36.3187 8.760 0.0034          Residual 14    58.0438 4.1460   Total 16    130.681

Explanation / Answer

a1.

Null Hypothesis: H0: 1 = 2 = 0;

Alternative Hypothesis: HA: At least one j 0

a2.

The test statistic , F = 8.760

a3..

Both answers are correct.

For p-value of F-score <0.05. Also P-value for t scores<0.05.

b1.

Null hypothesis: H0: 2 0;

Alternative Hypothesis : HA: 2 < 0

b2.

from anova table

P-value = 0.0377    

b3.

Since P-value <0.05 we fail to reject the null hypothesis

Do not reject H0; the unemployment rate and sales are not negatively related.

c1.

Null Hypothesis: H0: 1 0;

Alternative Hypothesis: HA: 1 > 0

c2.

P-value: = 0.0015    

c3.

Do not reject H0; advertising expenditures and sales are not positively related.

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