2. In order to increase sales, a car dealership has developed a 30-second TV ad to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. In order to increase sales, a car dealership has developed a 30-second TV ad to advertise a discount event. The data on the number of ads per day and number of cars sold are provided in the following table: No. of ads per day, x No. of cars sold, y 1 1 2 1 24 2 3. 3 3 29 32 45 41 4 21 18 17 22 26 34 35 Σχ- 30 Σν-344 , Σ-0 , ΣΥ-10742 , Σ-969 Consider an SLR model: y = B, + Bx+ɛ. [4] a) State all the necessary assumptions for the model to be valid. [3] b) Find the least-squares estimates B, and B,. Also obtain least-squares fitted regression line. Assuming no violations of the assumptions, answer the following questions: [6] c) Finds, an estimate of a. [5] d) Use the t-test to test whether there is a significant linear relationship between the number of ads per day and the number of cars sold. Use a =0.05. [3] e) Using the results below, decompose SSE into the sum of squares due to pure error, SSPE, and the sum of squares due to the lack of fit, SSLF. Hint: SSPE = EE, - y,) = 80 %3! No. of ads No. cars sold n, y, 1 21, 18, 17 24, 22, 26 34, 29, 32 45, 41, 35 3 18.6667 24 8.6667 8. 3 31.6667 12.6667 4 3 40.3333 50.6667 [6] f) Test whether the linear model y = Bo + Bx+ɛ is appropriate. Use a = 0.05. [1] g) How does your answer in part f) compare to that of part d)? 2. In order to increase sales, a car dealership has developed a 30-second TV ad to advertise a discount event. The data on the number of ads per day and number of cars sold are provided in the following table: No. of ads per day, x No. of cars sold, y 1 1 2 1 24 2 3. 3 3 29 32 45 41 4 21 18 17 22 26 34 35 Σχ- 30 Σν-344 , Σ-0 , ΣΥ-10742 , Σ-969 Consider an SLR model: y = B, + Bx+ɛ. [4] a) State all the necessary assumptions for the model to be valid. [3] b) Find the least-squares estimates B, and B,. Also obtain least-squares fitted regression line. Assuming no violations of the assumptions, answer the following questions: [6] c) Finds, an estimate of a. [5] d) Use the t-test to test whether there is a significant linear relationship between the number of ads per day and the number of cars sold. Use a =0.05. [3] e) Using the results below, decompose SSE into the sum of squares due to pure error, SSPE, and the sum of squares due to the lack of fit, SSLF. Hint: SSPE = EE, - y,) = 80 %3! No. of ads No. cars sold n, y, 1 21, 18, 17 24, 22, 26 34, 29, 32 45, 41, 35 3 18.6667 24 8.6667 8. 3 31.6667 12.6667 4 3 40.3333 50.6667 [6] f) Test whether the linear model y = Bo + Bx+ɛ is appropriate. Use a = 0.05. [1] g) How does your answer in part f) compare to that of part d)?
Expert Answer:
Answer rating: 100% (QA)
a Assuption of the model 1 The relationship between response y and regressor x is approx... View the full answer
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
Students also viewed these accounting questions
-
Table B-6 gives data on the number of new business incorporations (Y) and the number of business failures (X) for the United States from 1984 to 1995. a. What is the average value of new business...
-
An instructor collected data on the number of states students in her class have visited in the U.S. A dotplot for the collected data is shown below. a. Identify the observational units. b. Identify...
-
An instructor collected data on the number of states that 50 students in her class had visited in the U.S. The results are shown in the 6.1.11 dotplot. a. Use the dotplot to find and report the...
-
Discuss any of the established brands of the business concerned with woolworths in Australia
-
In Problem 12.10 on page 424, you used box office gross to predict DVD revenue. The data are stored in Movie. The company is about to release a movie on DVD that had a box office gross of $ 100...
-
Find the following values of z: a. z(0.12) b. z(0.28) c. z(0.85) d. z(0.99)
-
Assume that \(y\) is normally distributed with mean \(\mu\) and variance \(\sigma^{2}\). Let \(\phi(\cdot)\) and \(\Phi(\cdot)\) be the standard normal density and distribution functions,...
-
The City of Bedford is studying a 600-acre site on Route 356 for a new landfill. The startup cost has been calculated as follows: Purchase cost: ........$450 per acre Site preparation:...
-
You are tasked with predicting the occurrence of a binary event E. That is, = EUE, and ENE 0. Let p and 1-p denote your true probabilities for E and E, respectively. Let r and 1-r denote your...
-
FOSSIL IDENTIFICATION KEY Identify the names of the two fossils? Select the names of the two unique fossils that you identified from the snapshots located on the Parv Bed, and then click "Submit...
-
R is the midpoint of the bar (QS) and T is the midpoint of the bar (PS). If PQ=z+21 and RT-z-10, what is the value of z?
-
Sprinkle Inc. has outstanding 10,000 shares of 10 par value ordinary shares. On July 1, 2015, Sprinkle reacquired 100 shares at 87 per share. On September 1, Sprinkle reissued 60 shares at 90 per...
-
Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively. The complete annual reports, including the notes...
-
Ferraro, Inc. established a share-appreciation rights (SARs) program on January 1, 2015, which entitles executives to receive cash at the date of exercise for the difference between the market price...
-
The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to...
-
Moonwalker Corporation issued 2,000 shares of its \($10\) par value ordinary shares for \($60\),000. Moonwalker also incurred \($1\),500 of costs associated with issuing the shares. Prepare...
-
Assume a series of quarterly cashflows. Each cash flow is $1500 and they continue into theforeseeable future (i.e., forever). Given an interest rate(required rate of return) of 8% per year,co 2...
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
Continuing problem 29, marketing managers at the soft-drink company have asked their market research consultant to explore further the difference between the proportions of women and men who prefer...
-
Based on past sales experience, an appliance store stocks five window air conditioner units for the coming week. No orders for additional air conditioners will be made until next week. The weekly...
-
The effect of the shapes of input distributions on the distribution of an output can depend on the output function. For this problem, assume there are 10 input variables. The goal is to compare the...
-
For the periodic processes shown below: a. Schedule the processes using an RMS policy. b. Schedule the processes using an EDF policy. In each case, compute the schedule for an interval equal to the...
-
For the periodic processes shown below: a. Schedule the processes using an RMS policy. b. Schedule the processes using an EDF policy. In each case, compute the schedule for an interval equal to the...
-
For the given periodic process execution times and periods (P1 has the highest priority), show how much CPU time of higher-priority processes will be required during one period of each of the...
Study smarter with the SolutionInn App