The Following Is Part of the Results of a Regression $\alpha$

question 85

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.

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 $\alpha$ = 0.05,test for the significance of the coefficient of advertising.
c.At $\alpha$ = 0.05,test for the significance of the coefficient of the number of salespeople.

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Definitions:

Hypergeometric Random Variable

A type of discrete random variable that describes the number of successes in a sequence of draws from a finite population without replacement.

With Replacement

A sampling method where each item is replaced back into the population before the next item is selected, allowing for repeated selection.

Defective Units

Items in a production batch that do not meet the required quality standards or specifications.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon, with each outcome having an associated probability.