An article on pricing and competition in marketing reports the results of a regression analysis. Information price was the dependent variable, and the independent variables were six marketing measures. The R2 was 76.9%. Interpret the strength of this regression relationship. The number of data points was 242, and the F-test value was 44.8. Conduct the test and state your conclusions.
Answer to relevant QuestionsThe following excerpt reports the results of a regression of excess stock returns on firm size and stock price, both variables being ranked on some scale. Explain, critique, and evaluate the reported results. In terms of model assumptions, what is the difference between a multiple regression model with k independent variables and a correlation analysis involving these variables? Run a regression of profits against revenues and number of employees for the airline industry using the data in the following table. Interpret all your findings. Echlin, Inc., makes parts for automobiles. The company is engaged in strong competition with Japanese, Taiwanese, and Korean manufacturers of the same automobile parts. Recently, the company hired a statistician to study the ...Explain what is meant by perfect collinearity. What happens when perfect collinearity is present?
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