Question: The following estimated regression equation, based on 10 observations, relates sales to inventory investment and advertising expenditure for a clothing boutique. 9 = -18.37 +

The following estimated regression equation, based on 10 observations, relates sales to inventory investment and advertising expenditure for a clothing boutique. 9 = -18.37 + 2.01x1 + 4.74x2 Where: y = sales($1000s) x1 = inventory investment ($1000s) x2 = advertising expenditure ($1000s) The following statistics are provided: SSyy = 15182.9 SSE = 1130.7 57. = .2471 57, = .9484 Give a practical interpretation of each of the B-estimates b) Compute R and the adjusted-R2 c) Does the model appear to explain a large amount of variability in the data? Explain d) Compute the Mean Square Error (MSE) e) Compute the F-test statistic. Use the F-test and a = 0.05 to determine whether there is a relationship among variables. f) Predict the sales resulting from a $40,000 investment in inventory and $15,000 investment in advertising
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