A marketing analyst wants to examine the relationship between sales (in $1,000s)

Question

A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms. He estimates the model: Sales = 0 + 1 Advertising + . The following table shows a portion of the regression results. Coefficients Standard Error t-stat p-value Intercept 40.10 14.08 2.848 0.0052 Advertising 2.88 1.52 1.895 0.0608 When testing whether Advertising is significant at the 10% significance level, the conclusion is to _______________________________. not reject H0; advertising is significant reject H0; advertising is not significant not reject H0; advertising is not significant reject H0; advertising is significant

Explanation / Answer

from above output as p value 0.0608 is less than 10% significance level, for advrtising therfore

reject H0; advertising is significant

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