Question: `I am having a hard time figuring out a. A market researcher is studying online subscription services. She is particularly interested in what variables relate
`I am having a hard time figuring out "a".

A market researcher is studying online subscription services. She is particularly interested in what variables relate to the number of subscriptions for a particular online service. She is able to obtain the following sample information on 25 on-line subscription services. The following notation is used: Sub = Number of subscriptions (in thousands) Web page hits = Average monthly count (in thousands) Adv = Advertising budget of the service (in $ hundreds) Price = Average monthly subscription price ($) Service 1 2 3 4 5 6 7 8 9 10 11 12 13 picture Sub 37.95 37.66 37.55 38.78 37.67 38.23 36.90 38.28 38.95 39.27 38.30 38.84 38.14 Web Page Hits 588.9 585.3 566.3 642.9 624.2 603.9 571.9 584.3 605.0 676.3 587.4 576.4 570.8 Adv 13.2 13.2 19.8 17.6 17.6 15.4 11.0 28.6 28.6 17.6 17.6 22.0 17.6 Price 35.1 34.7 34.8 35.1 34.6 34.8 34.7 35.3 35.1 35.6 34.9 35.4 35.0 Service 14 15 16 17 18 19 20 21 22 23 24 25 Sub 38.39 37.29 39.15 38.29 38.09 37.83 39.37 37.81 37.42 38.83 38.33 40.24 Web Page Hits 586.5 544.0 611.1 643.3 635.6 598.9 657.0 595.2 520.0 629.6 680.0 651.2 Adv 15.4 11.0 24.2 17.6 19.8 15.4 22.0 15.4 19.8 22.0 24.2 33.0 Price 35.5 34.9 35.0 35.3 34.8 35.1 35.3 35.1 35.1 35.3 34.7 35.8 Click here for the Excel Data File a. Determine the regression equation. (Negative value should be indicated with a minus sign. Round your answers to 4 decimal places.) y = 0.01 + 0.01 x1 + 0.05 x2 + 0.01 x3 b. Conduct a global test of hypothesis to determine whether any of the regression coefficients are not equal to zero. Use = 0.05. (Round your answers to 2 decimal places.) H 0 : 1 = 2 = 3 = 0 H1: Not all i's = zero. Reject H0 if F > F= The null is rejected 3.07 35.38 in favor of the alternative, at least one of the independent variables matter(s). c. Conduct a test for the individual coefficients. Would you consider deleting any coefficients? All coefficients are significant . Do not delete any. e. Develop a histogram of the residuals. Do you see any problems with the normality assumption? The histogram appears to be normal. There is no problem . References Worksheet Difficulty: 2 Medium Learning Objective: 14-07 Apply multiple regression techniques to develop a linear model
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