The district manager of Jasons, a large discount electronics chain, is investiga

Question

The district manager of Jasons, a large discount electronics chain, is investigating why certain stores in her region are performing better than others. She believes that three factors are related to total sales: the number of competitors in the region, the population in the surrounding area, and the amount spent on advertising. From her district, consisting of several hundred stores, she selects a random sample of 30 stores. For each store, she gathered the following information.

y = total sales last year (in $ thousands)

x1 = number of competitors in the region

x2 = population of the region (in millions)

x3 = advertising expense (in $ thousands)

The results of a multiple regression analysis, using Minitab, follow.

3. If we test the significance of the individual regression coefficients, H0: i = 0, state the decision rule using the 0.05 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Analysis of variance Source DF SS MS Regression 3 3050 1016.67 Residual Error 26 2200 84.62 Total 29 5250

Explanation / Answer

We have to find individual 'p' values of the regression coefficients from the t values mentioned in table.

P value for x1 = 0.164 (from t table)

p value > 0.05 means null cant be rejected and this variable is not significant.

P value for x2 = The P-Value is < .00001 (from t table)

p value < 0.05 means null is rejected and this variable is significant.

P value for x3 = The P-Value is .018551 (from t table)

p value < 0.05 means null is rejected and this variable is significant.

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