An interesting marketing research effort has recently been reported, which incorporates within the variables that predict consumer satisfaction from a product not only attributes of the product itself but also characteristics of the consumer who buys the product. In particular, a regression model was developed, and found successful, regressing consumer satisfaction S on a consumer’s materialism M measured on a psychologically devised scale. For satisfaction with the purchase of sunglasses, the estimate of beta, the slope of S with respect to M, was b = – 2.20. The reported t statistic was – 2.53. The sample size was n = 54.7 Is this regression statistically significant? Explain the findings.
Answer to relevant QuestionsA regression analysis was carried out of returns on stocks (Y) versus the ratio of book to market value (X). The resulting prediction equation is Y = 1.21 + 3.1X (2.89) where the number in parentheses is the standard error ...An article in Financial Analysts Journal discusses results of a regression analysis of average price per share P on the independent variable X/k, where X/k is the contemporaneous earnings per share divided by firm-specific ...Analysts assessed the effects of bond ratings on bond yields. They reported a regression with r2 = 61.56%, which, they said, confirmed the economic intuition that predicted higher yields for bonds with lower ratings (by ...Using the definition of the t statistic in terms of sums of squares, prove (in the context of simple linear regression) that t2 = F. For problem 10–16, give a 95% prediction interval for the present value when the model is from the 1990s. In problem
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