Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Ak

Question

Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Akiko is concerned that the weak economic environment has hampered foot traffic in her area, thus causing a dramatic decline in sales In order to offset the decline in sales, she has pursued a strong advertising campaign. She believes advertising expenditures have a positive influence on sales. To support her claim, Akiko estimates a regression model as Sales-0 + 1 Advertising + 2Unemployment + . A portion of the regression results follows. Use Table 2 and Table 4 ANOVA Regression 2 72.6374 36.3187 8.760 Residua 4 58.0438 4.1460 Total df SS MS F Significance F 0.0034 16 130.681 Coefficients 17.5060 0.0266 Standard Error 3.9817 0.0068 Lower 95% 8.97 0.01 Upper 95% 26.05 0.04 -0.05 t Stat Intercept Advertising Unemployment-0.6879 p-value 4.3966 0.0006 3.9322 0.0015 0.2997 -2.2955 0.0377 a-1. Choose the appropriate hypotheses to test whether the explanatory variables jointly influence sales (O H0: 1 = 2-0; HA: At least one j > 0 0H0: 1 = 2 = 0; HA: At least one j#0 O Ho: 1 = 2=0; HA: At least one j

Explanation / Answer

a-1. Correct Answer (B)

a-2. F = 8.760

a-3. Correct Answer (B)

    Since p-value 0.0034 < alpha (0.05), we reject H0. Thus F-test is significant

b-1 Correct Answer (A)

b-2 P-Value 0.0377

b-3 Correct Answer : Option (D). That is, Unemployment rate and Sales are not related

H0: the regression coeffieint is zero

H1: the regression coefficieint is negative relation to sales

Here P-Value = 0.0377 > alpha 0.01, we accept H0

c-1: Correct Answer: Option (A)
c-2: P-value 0.0015

c-3. Correct Answer: Option (A) Unemployment and Sales are positively related

H0: Unemployment and Sales are not related

H1: Unemployment and Sales are positively related

Here P-Value = 0.0015 < alpha 0.01, we reject H0

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