SCENARIO 12-5
the Managing Partner of an Advertising Agency Believes

question 59

Short Answer

SCENARIO 12-5
The managing partner of an advertising agency believes that his company's sales are related to the industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with the following results: $\begin{array}{ll}{\text { Regression Statistics }} \\\text { Multiple R } & 0.802 \\\text { R Square } & 0.643 \\\text { Adjusted R Square } & 0.618 \\\text { Standard Error Syv } & 0.9234\\\text { Observations } & 16\end{array}$
ANOVA
$\begin{array}{lrrrcc} & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { Sig.F } \\\text { Regression } & 1 & 21.497 & 21.497 & 25.27 & 0.000 \\\text { Error } & 14 & 11.912 & 0.851 & & \\\text { Total } & 15 & 33.409 & & &\end{array}$


$\begin{array}{llll}\text { Predictor Coef } & \text { StdError } t \text { Stat } & \text { P-value }\\\hline\text { Intercept }& 3.962 & 1.440 & 2.75 & 0.016 \\\text { Industry } &0.040451 & 0.008048 & 5.03 & 0.000\end{array}$

$\text { Durbin-Watson Statistic } \quad 1.59$
-Referring to Scenario 12-5, the partner wants to test for autocorrelation using the Durbin-Watson statistic.Using a level of significance of 0.05, the critical values of the test are dL = , and dU = _.

---

Definitions:

Central Nervous System

This refers to the complex system comprised of the brain and spinal cord, acting as the primary control center for processing and sending out nerve signals throughout the body.

Endocrine System

A collection of glands that produce hormones which regulate metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Plasticity

The brain’s special capacity for change.

Complexity

The state or quality of being intricate or complicated, involving numerous interrelated parts or aspects.