A national chain of consumer electronics stores had the business objective of determining the effectiveness of newspaper
Question:
a. Construct a scatter plot for newspaper advertising and sales.
b. Fit a quadratic regression model and state the quadratic regression equation.
c. Predict the mean monthly sales for a city with newspaper advertising of $20,000.
d. Perform a residual analysis on the results and determine whether the regression assumptions are valid.
e. At the 0.05 level of significance, is there a significant quadratic relationship between monthly sales and newspaper advertising?
f. At the 0.05 level of significance, determine whether the quadratic model is a better fit than the linear model.
g. Interpret the meaning of the coefficient of multiple determination.
h. Compute the adjusted r2.
i. What conclusions can you reach concerning the relationship between newspaper advertising and sales?
Step by Step Answer:
Basic Business Statistics
ISBN: 9780321870025
13th Edition
Authors: Mark L. Berenson, David M. Levine, Kathryn A. Szabat