Question

A marketing manager analyzes the relationship between the annual sales of a firm (in $100,000s) and its advertising expenditures (in $10,000s). He collects data from 20 firms and estimates Sales =β0 + β1Advertising + . A portion of the regression results is shown in the accompanying table.


a. Specify the competing hypotheses in order to determine whether advertising expenditures and sales have a positive linear relationship.
b. Calculate the value of the test statistic. What is the p-value?
c. At the 5% significance level, what is the conclusion to the test? Do advertising expenditures and sales have a positive linearrelationship?


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  • CreatedJanuary 28, 2015
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