Regression Analysis the Local Grocery Store Wants to Predict

question 109

Multiple Choice

Regression Analysis The local grocery store wants to predict the daily sales in dollars.The manager believes that the amount of newspaper advertising significantly affects the store sales.He randomly selects 7 days of data consisting of daily grocery store sales (in thousands of dollars) and advertising expenditures (in thousands of dollars) .The Excel/Mega-Stat output given above summarizes the results of the regression model. At a significance level of .05,test the significance of the slope and state your conclusion.

• A)We reject H₀ and conclude there is sufficient evidence that dollars spent on advertising is a useful linear predictor of the grocery store sales.
• B)We failed to reject H₀ and conclude there is not sufficient evidence that dollars spent on advertising is a useful linear predictor of the grocery store sales.
• C)We failed to reject H₀ and conclude there is sufficient evidence that dollars spent on advertising is a useful linear predictor of the grocery store sales.
• D)We reject H₀ and conclude that there is sufficient evidence that grocery store sales in dollars is a useful linear predictor of the dollars spent on advertising.
• E)We reject H₀ and conclude that there is not sufficient evidence that dollars spent on advertising is a useful linear predictor of the grocery store sales.

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Definitions:

Market Equilibrium

A situation in economics where the quantity of goods supplied is equal to the quantity of goods demanded at a specific price.

Trade Restrictions

measures taken by governments to control or limit the trade of goods and services across their borders, such as tariffs and quotas.

Import Quota

A government-imposed limit on the quantity of a particular good that can be imported into a country.

Domestic Goods

Are products and services that are produced within a country's borders, as opposed to imported goods from other countries.