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Observations are taken on sales of a certain mountain bike in 20 sporting goods

ID: 3356141 • Letter: O

Question

Observations are taken on sales of a certain mountain bike in 20 sporting goods stores. The regression model was Y = total sales (thousands of dollars), X1 = display floor space (square meters), X2 = competitors' advertising expenditures (thousands of dollars), X3 = advertised price (dollars per unit).

Fill in the values in the table given here. (Negative values should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your t-values to 3 decimal places and p-values to 4 decimal places.)

   

  

What is the critical value of Student's t in Appendix D for a two-tailed test at = 0.01? (Round your answer to 3 decimal places.)

     

Observations are taken on sales of a certain mountain bike in 20 sporting goods stores. The regression model was Y = total sales (thousands of dollars), X1 = display floor space (square meters), X2 = competitors' advertising expenditures (thousands of dollars), X3 = advertised price (dollars per unit).

Explanation / Answer

here degree of freedom =n-p=20-4 =16

hence from above: as tcalc =Coefficient/SE

b-1) at 0.01 level and 16 degree of freedom critical value =2.921

Predictor Coefficient SE      tcalc      p-value   Intercept 1,271.30 337.9 3.762 0.0017   FloorSpace 11.001 1.8 6.112 0.0000   Competing Ads -6.82 3.995 -1.707 0.1071   Price -0.14882 0.08678 -1.715 0.1057