Exploratory research published in the Journal of Professional Services Marketing (Vol. 5, 1990) examined the relationship between
Question:
Exploratory research published in the Journal of Professional Services Marketing (Vol. 5, 1990) examined the relationship between deposit share of a retail bank and several marketing variables. Quarterly deposit share data were collected for 5 consecutive years for each of nine retail banking institutions. The model analyzed took the following form:
where Yt = deposit share of a bank in quarter t (t = 1, 2, c, 20), Pt - 1 = expenditures on promotion-related activities in quarter t - 1, St - 1 = expenditures on service related activities in quarter t - 1, and Dt - 1 = expenditures on distribution-related activities in quarter t - 1. A separate model was fit for each bank with the results shown in the table.
a. Interpret the values of R2 for each bank.
b. Test the overall adequacy of the model for each bank using α = .01.
c. Conduct the Durbin-Watson d-test for positive residual correlation for each bank at α = .01. What conclusions do you draw about autocorrelation?
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9780134506593
13th Edition
Authors: James T. McClave, P. George Benson, Terry Sincich