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TABLE 13-5 The managing partner of an advertising agency believes that his compa

ID: 388535 • Letter: T

Question

TABLE 13-5 The managing partner of an advertising agency believes that his company's sales are related to the industry sales. He uses Microsoft Excel’s Data Analysis tool to analyze the last 4 years of quarterly data (i.e., n = 16) with the following results: Regression Statistics Multiple R 0.802 R Square 0.643 Adjusted R Square 0.618 Standard Error SYX 0.9224 Observations 16 ANOVA df SS MS F Sig.F Regression 1 21.497 21.497 25.27 0.000 Error 14 11.912 0.851 Total 15 33.409 Predictor Coef StdError tStat P-value Intercept 3.962 1.440 2.75 0.0016 Industry 0.040451 0.008048 5.03 0.000 Durbin-Watson Statistic 1.59 Referring to Table 13-5, the estimates of the Y-intercept and slope are significant at the ________.

Explanation / Answer

The estimates of the Y-intercept and slope are significant at the 0.000 .

A low significant level indicates the model is useful in predicting Y.