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 the following linear regression model: Sales = β0 + β1Unemployment + β2Advertising + . A portion of the regression results is shown in the accompanying table.


a. At the 5% significance level, test whether the explanatory variables jointly influence sales.
b. At the 1% significance level, test whether the unemployment rate is negatively related with sales.
c. At the 1% significance level, test whether advertising expenditures are positively related withsales.


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  • CreatedJanuary 28, 2015
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