Observations are taken on sales of a certain mountain bike in 25 sporting goods

Question

Observations are taken on sales of a certain mountain bike in 25 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 25 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

b - 1) Degrees of freedom for all the variables and intercept = n - 2 = 25 - 2 = 23

Hence,

Critical value = 2.807

b - 2) t stats for floorspace = 11.155/1.85 = 6.03

Hence,

Only FloorSpace differs significantly from zero.

Option A is correct.

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