A researcher collected statistics on the sales amount of a product in 120 different markets and the advertising budgets used in TV, radio and newspaper media channels for each of these markets. The sales amount are expressed in 1000 units, and the budgets are expressed in 1000$. The researcher wants to create a simple linear regression model by choosing one among the TV, radio and newspaper advertising budgets to explain the amount of sales. Accordingly, answer the following question by using the data in the "Regression Data Set" document in the appendix. 1) a) In your opinion, which variable should this researcher choose as a

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
icon
Concept explainers
Question

A researcher collected statistics on the sales amount of a product in 120 different markets and the advertising budgets used in TV, radio and newspaper media channels for each of these markets. The sales amount are expressed in 1000 units, and the budgets are expressed in 1000$. The researcher wants to create a simple linear regression model by choosing one among the TV, radio and newspaper advertising budgets to explain the amount of sales. Accordingly, answer the following question by using the data in the "Regression Data Set" document in the appendix.

1) a) In your opinion, which variable should this researcher choose as an independent variable to the simple regression model? Explain your decision by providing its statistical basis.

Regression Data Set
TV Budget
(1000$)
Radio Budget
(1000$)
Observation
Newspaper
Sales Amount
Number
Budget (1000$)
(1000 units)
7,3
28,1
41,4
5,5
136,2
19,2
16,6
13,2
3
210,8
49,6
37,7
23,8
9,3
21,4
210,7
29,5
18,4
53,5
2
8,1
261,3
42,7
54,7
24,2
7
239,3
15,5
27,3
15,7
8.
102,7
29,6
42,8
9,3
8,4
14
131,1
28,9
18
10
69
0,9
9,3
Transcribed Image Text:Regression Data Set TV Budget (1000$) Radio Budget (1000$) Observation Newspaper Sales Amount Number Budget (1000$) (1000 units) 7,3 28,1 41,4 5,5 136,2 19,2 16,6 13,2 3 210,8 49,6 37,7 23,8 9,3 21,4 210,7 29,5 18,4 53,5 2 8,1 261,3 42,7 54,7 24,2 7 239,3 15,5 27,3 15,7 8. 102,7 29,6 42,8 9,3 8,4 14 131,1 28,9 18 10 69 0,9 9,3
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Correlation, Regression, and Association
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman