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a. Use a = .01 to test the hypotheses H0:b1=b2= 0 Ha:b1 and/or b2 is not equal to zero for the model y = b0 + b1x1 + b2x2 + e, where x1=television advertising ($1000s) x2=newspaper advertising ($1000s) b. Use a = .05 to test the significance of b1. Should x1 be dropped from the model? c. Use a = .05 to test the significance of b2. Should x2 be dropped from the model?

a. Use a = .01 to test the hypotheses H0:b1=b2= 0 Ha:b1 and/or b2 is not equal to zero for the model y = b0 + b1x1 + b2x2 + e, where x1=television advertising ($1000s) x2=newspaper advertising ($1000s) b. Use a = .05 to test the significance of b1. Should x1 be dropped from the model? c. Use a = .05 to test the significance of b2. Should x2 be dropped from the model?

Elementary Algebra
Elementary Algebra
17th Edition
ISBN:9780998625713
Author:Lynn Marecek, MaryAnne Anthony-Smith
Publisher:Lynn Marecek, MaryAnne Anthony-Smith
Chapter1: Foundations
Section1.3: Add And Subtract Integers
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Refer to the chart.

a. Use a = .01 to test the hypotheses

H0:b1=b2= 0

Ha:b1 and/or b2 is not equal to zero

for the model y = b0 + b1x1 + b2x2 + e, where

x1=television advertising ($1000s)

x2=newspaper advertising ($1000s)

b. Use a = .05 to test the significance of b1. Should x1 be dropped from the model?

c. Use a = .05 to test the significance of b2. Should x2 be dropped from the model?

### Advertising and Revenue Data The table below illustrates the relationship between weekly gross revenue and advertising expenditure in thousands of dollars ($1000s): | Weekly Gross Revenue ($1000s) | Television Advertising ($1000s) | Newspaper Advertising ($1000s) | |-------------------------------|------------------------------|-------------------------------| | 96 | 5.0 | 1.5 | | 90 | 2.0 | 2.0 | | 95 | 4.0 | 1.5 | | 92 | 2.5 | 2.5 | | 95 | 3.0 | 3.3 | | 94 | 3.5 | 2.3 | | 94 | 2.5 | 4.2 | | 94 | 3.0 | 2.5 | **Explanation:** - **Weekly Gross Revenue**: This column shows the gross revenue generated weekly, measured in thousand dollar units. - **Television Advertising**: This column indicates the amount spent on television advertisements per week, in thousands of dollars. - **Newspaper Advertising**: This column details the weekly expenditure on newspaper adverts, also in thousands of dollars. This dataset helps in analyzing the impact of advertising spending on different media on the gross revenue.
Transcribed Image Text:### Advertising and Revenue Data The table below illustrates the relationship between weekly gross revenue and advertising expenditure in thousands of dollars ($1000s): | Weekly Gross Revenue ($1000s) | Television Advertising ($1000s) | Newspaper Advertising ($1000s) | |-------------------------------|------------------------------|-------------------------------| | 96 | 5.0 | 1.5 | | 90 | 2.0 | 2.0 | | 95 | 4.0 | 1.5 | | 92 | 2.5 | 2.5 | | 95 | 3.0 | 3.3 | | 94 | 3.5 | 2.3 | | 94 | 2.5 | 4.2 | | 94 | 3.0 | 2.5 | **Explanation:** - **Weekly Gross Revenue**: This column shows the gross revenue generated weekly, measured in thousand dollar units. - **Television Advertising**: This column indicates the amount spent on television advertisements per week, in thousands of dollars. - **Newspaper Advertising**: This column details the weekly expenditure on newspaper adverts, also in thousands of dollars. This dataset helps in analyzing the impact of advertising spending on different media on the gross revenue.
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