The following is part of the results of a regression analysis involving sales (y in millions of dollars), advertising expenditures (x1 in thousands of dollars), and number of salespeople (x2) for a corporation. The regression was performed on a sample of 10 observations.
Coefficients
Standard Error
Intercept40.00
7.00
x18.00
2.50
x26.00
3.00
?
a.If the company uses $40,000 in advertisement and has 30 salespeople, what are the expected sales? Give your answer in dollars.b.At ? = .05, test for the significance of the coefficient of advertising.c.At ? = .05, test for the significance of the coefficient of the number of salespeople.
What will be an ideal response?
?
| a. | $540,000,000 |
| b. | t = 3.2 > critical t = 2.365; reject H0; coefficient of advertising is significant. |
| c. | t = 2.0 < critical t = 2.365; do not reject H0; no evidence that the coefficient of the number of salespeople is significant. |
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