Run a MLR model for the following data: YEAR QTR SALES TV RADIO NEWS 1993 1 88 1
ID: 3217758 • Letter: R
Question
Run a MLR model for the following data: YEAR QTR SALES TV RADIO NEWS 1993 1 88 100 95 87 2 80 99 99 98 3 96 101 103 101 4 76 93 95 91 1994 1 80 95 102 88 2 73 95 94 84 3 58 80 89 74 4 116 116 112 102 1995 1 104 106 110 105 2 99 105 87 97 3 64 90 90 88 4 126 113 101 108 1996 1 94 96 100 89 2 71 98 85 78 3 111 109 99 109 4 109 102 101 108 1997 1 100 100 93 102 2 127 107 108 110 3 99 108 100 95 4 82 95 69 90 1998 1 67 91 95 85 2 100 114 91 103 3 78 93 80 80 4 115 115 85 104 1999 1 83 97 105 83 a) interprete the meaning of the sample intercept, sample slope, and coefficient of determination b) Is the overall model significant? c) Is the slope term significant? Are the three variables significant, which ones are more significant? Run a MLR model for the following data: YEAR QTR SALES TV RADIO NEWS 1993 1 88 100 95 87 2 80 99 99 98 3 96 101 103 101 4 76 93 95 91 1994 1 80 95 102 88 2 73 95 94 84 3 58 80 89 74 4 116 116 112 102 1995 1 104 106 110 105 2 99 105 87 97 3 64 90 90 88 4 126 113 101 108 1996 1 94 96 100 89 2 71 98 85 78 3 111 109 99 109 4 109 102 101 108 1997 1 100 100 93 102 2 127 107 108 110 3 99 108 100 95 4 82 95 69 90 1998 1 67 91 95 85 2 100 114 91 103 3 78 93 80 80 4 115 115 85 104 1999 1 83 97 105 83 a) interprete the meaning of the sample intercept, sample slope, and coefficient of determination b) Is the overall model significant? c) Is the slope term significant? Are the three variables significant, which ones are more significant?Explanation / Answer
Following is the regression output (using excel add-in):
Considering Sales are dependent variable and others independent variables.
a) Interpretations:
Intercept- if there is no TV, RADIO, NEWS sales is -106
Slopes of individual variables: if TV increases by 1 unit, Sales increases by 1.02 unit (likewise for other coefficients)
coefficient of determination = R-sq= 87.12% = 0.871
b) Is the overall model significant?
Ans: Yes, since F-stat is significant at 5% level
c) Is the slope term significant? Are the three variables significant?
Only TV & NEWS are significant variables at 5% level not RADIO.
SUMMARY OUTPUT Regression Statistics Multiple R 0.933697 R Square 0.871791 Adjusted R Square 0.853475 Standard Error 7.342002 Observations 25 ANOVA df SS MS F Significance F Regression 3 7697.355 2565.785 47.59829 1.53E-09 Residual 21 1132.005 53.90499 Total 24 8829.36 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Intercept -106.341 19.79243 -5.3728 2.5E-05 -147.501 -65.1801 -147.501 TV 1.022581 0.279881 3.653634 0.001483 0.440538 1.604625 0.440538 RADIO 0.136938 0.17071 0.802165 0.431442 -0.21807 0.49195 -0.21807 NEWS 0.870136 0.243845 3.568403 0.001814 0.363033 1.377239 0.363033Related Questions
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