Need help with all 2. Suppose you collect data on the quality level (measured on a continuoussome scale between 0 and 100, where 0 corresponds to the lowest qualitylevel and 100 to the highest quality level) of firms' product, on firms'advertisement investments (measured in 1k AUD), and on firms' salesrevenues (measured in 1k AUD). You regress sales revenue on qualitylevel and on advertisement investments. Here is the Excel output:SUMMARY OUTPUTMultiple RR SquareRegression StatisticsAdjusted R SquareStandard ErrorObservationsANOVARegressionResidualTotalInterceptAdvertisement InvestmentsQuality Level0.9994858120.9989718880.9988784231.808545855df25222FSSMS69918.90249 34959.45124 10688 2242671.95843842 3.2708381124 69990.86093Significance F1.35658E-33Coefficients Standard Error t StatLower 95%Upper 95%P-value13.7623304 17.17587708 0.801259251 0.431550907 21.8582585 49.38291931.450441963 0.434670743 3.33687506 0.00298855 0.548990015 2.351893914.963522727 0.034878648 142.308346 4.13434E-34 4.891188838 5.035856616 (a) How many observations do you have in the data set?(b) Write down the corresponding regression model(c) Write down the estimated model(d) What's the R square and what does it mean?(e) Suppose you wanted to test whether the 'slopes' are jointly signifi-cantly different than zero? Write down the null hypothesis and thealternative hypothesis. At significance level of 1 per-cent, what doyou conclude?(f) What is the estimated effect on sales from increasing the quality levelby one unit, while holding fix advertisement investments?(g) What is the estimated effect on sales from decreasing advertisementinvestments by 2 units (that is 2k AUD). while holding fix qualitylevel?(h) What are the estimated sales revenues of a firm that has quality level0 and does not invest anything into advertisement?(i) What is the 95 per cent confidence interval of the coefficient estimatorof quality level?I(i) Suppose you wanted to test whether investment in advertisementaffects sales? What would be the null hypothesis, the test statistic.what would you conclude at the 1 per cent significance level?

Answered: (a) How many observations do you have…

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Step 1: Given Information

The results of the regression of sales revenue on quality level and advertisement investments are given as

TABLE 1

TABLE 2

TABLE 3