A Regression Analysis Relating a Company's Sales, Their Advertising Expenditure

question 109

Essay

A regression analysis relating a company's sales, their advertising expenditure, price (per unit), and time (taken per unit production) resulted in the following output. $\begin{array} { l l l l l l } \text { Regression Statistics } & & & & \\\text { Multiple R } & 0.9895 & & & \\\text { R Square } & 0.9791 & & & \\\text { Adjusted R Square } & 0.9762 & & & \\\text { Standard Error } & 232.29 & & & & \\\\ANOVA\\& d f & \text { SS } & M S & F & \text { Signifcance F } \\\text { Regression } & 3 & 53184931.86 & 17728310.62 & 328.56 & 0.0000\\\\\\& &{\text { Sandard }} \\& \text { Coeffcients } & \text { Error } & t \text { Stat } & P \text {-Value } \\\text { Intercept } & 927.23 & 1229.86 & 0.75 & 0.4593 \\\text { Advertising }\left(\mathrm{x}_{1}\right) & 1.02 & 3.09 & 0.33 & 0.7450 \\\text { Price }\left(\mathrm{x}_{2}\right) & 15.61 & 5.62 & 2.78 & 0.0112 \\\text { Time }\left(\mathrm{x}_{3}\right) & 170.53 & 28.18 & 6.05 & 0.0000\end{array}$ ​
a.
Using α = .05, determine whether or not the regression model is significant. Fully explain how you arrived at your conclusion (give numerical reasoning) and what your answer indicates.
b.
At α = .05, determine which variables are significant and which are not. Explain how you arrived at your conclusion (give numerical reasoning).
c.
Fully explain the meaning of R Square, which is given in the above regression results. Be very specific and give numerical explanation.

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Definitions:

Biological Parents

The individuals from whom a person inherits their genetic traits, typically referred to as the mother and father.

Adoptive Parents

are individuals who become the legal parents of a child through the process of adoption.

Outgoingness

A personality trait characterizing individuals who are friendly, sociable, and willing to engage in social interactions.

Political Attitudes

Individual's views and preferences about public policies, political parties, and candidates, as well as the institutions and processes of government.