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An electronics company is looking to develop a regression model to predict the n

ID: 424970 • Letter: A

Question

An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch. Data is provided below:

Sales (units)

Price ($)

Advertising ($)

500

100

50

480

120

40

485

110

45

510

103

55

490

108

40

488

109

30

496

106

45

If the alpha for the F Statistic is 0.05 the model is                        [ Select ] ["not significant", "significant", "incomplete so the F Statistic can not be computed"] .

Use Quiz 4 Excel, Regression 1.

Sales (units)

Price ($)

Advertising ($)

500

100

50

480

120

40

485

110

45

510

103

55

490

108

40

488

109

30

496

106

45

Explanation / Answer

As the Alpha corresponds to 0.05, we can say that the probability of rejecting the null hypothesis when it is true is 5%. This is a desired statistics and hence tha value make the F statistics "Significant".

Answer- B) Significant

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