The Following Is Part of the Results of a Regression

question 129

Essay

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.
$\begin{array}{lr}&\text { Coefilicient }&\text { Standard Error }\\\text { Intercept } & 40.00 & 7.00 \\X_{1} & 8.00 & 2.50 \\X_{2} & 6.00 & 3.00\end{array}$
a. If the company uses $40,000 in advertisement and has 30 salespersons, what are the expected sales? Give your answer in dollars.
b. At α = 0.05, test for the significance of the coefficient of advertising.
c. At α = 0.05, test for the significance of the coefficient of the number of salespeople.

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Definitions:

Balance of Probabilities

The standard of proof used in civil cases, requiring that something is more likely to be true than not for it to be considered proven.

Civil Law Suit

A legal action taken by one individual or entity against another to resolve a private dispute or claim, typically adjudicated in civil court.

Prosecutor

A legal official who conducts criminal proceedings against an accused person on behalf of the state or the public interest.

Writ of Certiorari

An order issued by a higher court to a lower court to transfer the records of a specific case for review.