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

question 53

Short Answer

Instruction 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's Data Analysis tool to analyse the last four years of quarterly data with the following results:
Regression Statistics
$\begin{array}{ll}\text { Multiple R } & 0.802 \\ \text { R Square } & 0.643\\\text { Adjusted R Square}& 0.618\\\text {Standard Error SYX }& 0.9224 \\\text {Observations}&16\\\end{array}$

$\begin{array}{l}\text { ANOVA }\\\begin{array}{lrcccc} & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { Sig.F } \\\text { Regression } & 1 & 21.497 & 21.497 & 25.27 & 0.000 \\\text { Error } & 14 & 11.912 & 0.851 & & \\\text { Total } & 15 & 33.409 & & &\end{array}\end{array}$

$\begin{array}{llrl}\text { Predictor}&\text { Coef } & \text { StdError } & \frac{\text { t Stat }}{} & \text { P-value } \\\text { Intercept}&3.962 & 1.440 & 2.75 & 0.016 \\\text {Industry }&0.040451 & 0.008048 & 5.03 & 0.000\\ \\\text {Durbin-Watson Statistic }&1.59\\\end{array}$
-Referring to Instruction 12-5,the standard error of the estimate is ________.

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Definitions:

Casualty Loss

A loss resulting from a sudden, unexpected, or unusual event such as a natural disaster, theft, or accident.

Taxpayer

An individual or entity that is obligated to pay taxes to a federal, state, or local government based on income earned, property owned, or consumption.

Casualty Loss Deduction

A tax deduction that allows taxpayers to deduct losses caused by sudden, unexpected or unusual events such as natural disasters, fires, or thefts.

Fair Market Value

The price at which an asset would sell under normal market conditions between a willing buyer and seller, both having reasonable knowledge of the facts.