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In Order to Determine Whether or Not the Number of Automobiles

question 6

Essay

In order to determine whether or not the number of automobiles sold per day (Y) is related to price (X₁ in $1,000), and the number of advertising spots (X₂), data were gathered for 7 days. Part of the regression results is shown below. $In order to determine whether or not the number of automobiles sold per day (Y) is related to price (X<sub>1</sub> in $1,000), and the number of advertising spots (X<sub>2</sub>), data were gathered for 7 days. Part of the regression results is shown below. a. Determine the least squares regression function relating Y to X1 and X2. b. If the company charges $20,000 for each car and uses 10 advertising spots, how many cars would you expect them to sell in a day? c. At \alpha = 0.05, test to determine if the fitted equation developed in Part a represents a significant relationship between the independent variables and the dependent variable.d. At 95% confidence, test to see if price is a significant variable.e. At 95% confidence, test to see if the number of advertising spots is a significant variable.f. Determine the multiple coefficient of determination.$
a. Determine the least squares regression function relating Y to X1 and X2.
b. If the company charges $20,000 for each car and uses 10 advertising spots, how many cars would you expect them to sell in a day?
c. At $\alpha$ = 0.05, test to determine if the fitted equation developed in Part a represents a significant relationship between the independent variables and the dependent variable.d. At 95% confidence, test to see if price is a significant variable.e. At 95% confidence, test to see if the number of advertising spots is a significant variable.f. Determine the multiple coefficient of determination.

Definitions:

Delivery Date

The specific date on which a financial transaction, especially pertaining to futures or options contracts, is scheduled to be settled or executed.

Futures Contracts

Standardized agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Actual Delivery

The physical exchange of an asset between seller and buyer or the completion of a transaction, as opposed to a contract being settled by other means.

Interest Rate Futures

Financial derivatives contracts that speculate on the future level of interest rates, allowing investors to hedge or speculate on changes in interest rates.