A company wants to estimate how effective different types of advertising are for promoting its products. Specifically, the company is interested in estimating the effectiveness of radio advertising and newspaper advertising. A sample of 50 cities is selected for the study during a test period of one month. The populations of the selected cities are approximately the same. Each city is allocated a specific expenditure level for radio advertising and for newspaper advertising. Sales of the product (in thousands of dollars) and the levels of expenditure (in thousands of dollars) on both types of advertising are recorded during the test month. The collected data are given in the attached Excel spreadsheet ads2.xls. ads2.xls

a. Specify a suitable multiple regression equation for predicting sales.

b. Use Excel to estimate the coefficients of the regression equation.

c. Are the estimated slope coefficients statistically significant? Explain.

d. Interpret the estimated slope coefficients.

e. Predict the sales for a city in which radio advertising is $60,000 and newspaper advertising is $60,000.

Sales	Radio	Newspaper
1622	0	48
1865	0	48
1459	75	30
1042	75	30
1517	90	36
1619	90	36
1552	105	42
1962	105	42
1470	120	30
1637	120	30
2713	135	54
2629	135	54
1740	150	0
1523	150	0
2215	165	30
2217	165	30
2342	180	36
2393	180	36
2535	195	42
2902	195	42
3110	210	48
2862	210	48
1042	75	30
1517	90	36
1619	90	36
1552	105	42
1962	105	42
1470	120	30
1637	120	30
2713	135	54
2629	135	54
1740	150	0
1523	150	0
2215	165	30
2217	165	30
2342	180	36
2393	180	36
1740	150	0
1523	150	0
2215	165	30
2217	165	30
2342	180	36
2393	180	36
2535	195	42
2902	195	42
3110	210	48
2862	210	48
1042	75	30
1517	90	36
1619	90	36

Answer rating: 100% (QA)

SUMMARY OUTPUT Regression Statistics Multiple R 0912852017 R Square 0833298805 Adjusted R Square 082... View the full answer