Advertising and Sales. Regarding the household-appliance manufacturer that wants to analyze the relationship between total sales and the company’s expenditures on three primary means of advertising (television, magazines, and radio). a. Explain what it would mean for the assumptions for multiple linear regression inferences to be satisfied with television, magazine, and radio advertising expenditures as predictor variables for sales. b. Use the computer output to obtain the coefficient of determination, R2. Interpret your result. c. Determine and interpret the standard error of the estimate, se. d. At the 5% significance level, do the data provide sufficient evidence to conclude that, taken together, television, magazine, and radio advertising expenditures are useful for predicting sales?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Advertising and Sales. Regarding the household-appliance manufacturer that wants to analyze the relationship between total sales and the company’s expenditures on three primary means of advertising (television, magazines, and radio).
a. Explain what it would mean for the assumptions for multiple linear regression inferences to be satisfied with television, magazine, and radio advertising expenditures as predictor variables for sales.
b. Use the computer output to obtain the coefficient of determination, R2. Interpret your result.
c. Determine and interpret the standard error of the estimate, se.
d. At the 5% significance level, do the data provide sufficient evidence to conclude that, taken together, television, magazine, and radio advertising expenditures are useful for predicting sales?
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