A company is interested in the effectiveness of radio advertising and newspaper
ID: 3208918 • Letter: A
Question
A company is interested in the effectiveness of radio advertising and newspaper advertising on the overall sales of its products. The sales of their products and the levels of both types of media expenditure (all in thousands of dollars) for 11 locations were recorded in the following table during a one month test period. Answer parts (a) through (d) below.
a. Identify the coefficients b0, b1, and b2 that form the multiple regression equation below for the given data. Let X1 represent radio advertising and X2 represent newspaper advertising.
b0=
b1=
b2=
(Round to three decimal places as needed.)
b. Interpret the meaning of the slopes, b1 and b2, in this problem. Select the correct choice below.
A. The slope b1 represents the change in the mean sales per unit change in radio advertising. The slope b2
represents the change in the mean sales per unit change in newspaper advertising.
B. The slope b1 represents the change in the mean sales per unit change in newspaper advertising. The slope b2
represents the change in the mean sales per unit change in radio advertising.
C. The slopes b1 and b2 represent the amount of radio advertising and newspaper advertising, respectively.
c. Interpret the meaning of the regression coefficient, b0. Select the correct choice below.
A.The coefficient b0 represents the estimated amount spent on radio advertising when there is no money spent on newspaper advertising.
B.The coefficient b0 represents the estimated amount spent on newspaper advertising when there is no money spent on radio advertising.
C.The coefficient b0 represents the estimated mean sales when there is no money spent on radio advertising or newspaper advertising.
D.The coefficient b0represents the total amount spent on newspaper advertising and radio advertising.
d. Which type of advertising is more effective? Explain. Select the correct choice below.
A. It cannot be determined which type of advertisin is more effective because there is not enough information.
B. Newspaper advertising is more effective because its slope is greater.
C. Radio advertising and newspaper advertising are equally effective because their slopes are equal.
D. Radio advertising is more effective because its slope is greater.
Radio ads Newspaper ads Sales 2 40 971 26 26 622 31 30 914 36 34 932 39 24 879 44 44 1573 49 0 909 56 26 1324 60 29 1407 64 35 1519 71 40 1716Explanation / Answer
a. Identify the coefficients b0, b1, and b2 that form the multiple regression equation below for the given data. Let X1 represent radio advertising and X2 represent newspaper advertising.
b0=57.6417
b1=13.9021
b2=16.7278
b. Interpret the meaning of the slopes, b1 and b2, in this problem
Ans:The slope b1 represents the change in the mean sales per unit change in radio advertising. The slope b2 represents the change in the mean sales per unit change in newspaper advertising
c. Interpret the meaning of the regression coefficient, b0.
Ans:The coefficient b0 represents the estimated mean sales when there is no money spent on radio advertising or newspaper advertising.
d. Which type of advertising is more effective?
Ans:Radio advertising is more effective because its slope is greater.
SUMMARY OUTPUT Regression Statistics Multiple R 0.909549087 R Square 0.827279541 Adjusted R Square 0.784099426 Standard Error 165.9861144 Observations 11 ANOVA df SS MS F Significance F Regression 2 1055703.606 527851.8 19.15881 0.00088997 Residual 8 220411.1213 27551.39 Total 10 1276114.727 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 57.64178163 189.8928379 0.303549 0.769216 -380.2518874 495.5354507 -380.2518874 495.5354507 X Variable 1 13.9021079 2.668307654 5.210084 0.000812 7.748979423 20.05523638 7.748979423 20.05523638 X Variable 2 16.72784398 4.442724836 3.765222 0.005503 6.48290214 26.97278581 6.48290214 26.97278581Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.