Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Akiko is concerned that the weak economic environment has hampered foot traffic in her area, thus causing a dramatic decline in sales. In order to offset the decline in sales, she has pursued a strong advertising campaign. She believes advertising expenditures have a positive influence on sales. To support her claim, Akiko estimates the following linear regression model: Sales = 6, + 6,Unemployment + 6,Advertising + E. A portion of the regression results is shown in the accompanying table. ANOVA df Significance F SS MS F Regression 2 55.5974 27.7987 9.491 0.002 Residual 14 41.0038 2.9288

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I would like for you to answer a-1 through b-1
Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Akiko is concerned that the weak economic
environment has hampered foot traffic in her area, thus causing a dramatic decline in sales. In order to offset the decline in sales, she
has pursued a strong advertising campaign. She believes advertising expenditures have a positive influence on sales. To support her
claim, Akiko estimates the following linear regression model: Sales = 69 + 6,Unemployment + 6,Advertising + E. A portion of the
regression results is shown in the accompanying table.
ANOVA
df
SS
MS
Significance F
Regression
Residual
55.5974
27.7987
9.491
0.002
14
41.0038
2.9288
Total
16
96.6010
Standard
Coefficients
Error
t Stat
p-value
0.005
Intercept
Unemployment
Advertising
12.1640
3.6640
3.3200
-0.6615
0.3005
-2.2010
0.045
0.0258
0.0087
2.9660
0.010
a-1. Choose the appropriate hypotheses to test whether the explanatory variables jointly influence sales.
O Ho: 8, = 6, = 0; HA: At least one 6; # 0
O Ho: 61 = 62 = 0; HA: At least one 6, > 0
O Ho: 61 = 62 = 0; HA: At least one 6, < 0
Transcribed Image Text:Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Akiko is concerned that the weak economic environment has hampered foot traffic in her area, thus causing a dramatic decline in sales. In order to offset the decline in sales, she has pursued a strong advertising campaign. She believes advertising expenditures have a positive influence on sales. To support her claim, Akiko estimates the following linear regression model: Sales = 69 + 6,Unemployment + 6,Advertising + E. A portion of the regression results is shown in the accompanying table. ANOVA df SS MS Significance F Regression Residual 55.5974 27.7987 9.491 0.002 14 41.0038 2.9288 Total 16 96.6010 Standard Coefficients Error t Stat p-value 0.005 Intercept Unemployment Advertising 12.1640 3.6640 3.3200 -0.6615 0.3005 -2.2010 0.045 0.0258 0.0087 2.9660 0.010 a-1. Choose the appropriate hypotheses to test whether the explanatory variables jointly influence sales. O Ho: 8, = 6, = 0; HA: At least one 6; # 0 O Ho: 61 = 62 = 0; HA: At least one 6, > 0 O Ho: 61 = 62 = 0; HA: At least one 6, < 0
a-2. Find the value of the appropriate test statistic. (Round your answer to 3 decimal places.)
Test statistic
a-3. At the 5% significance level, do the explanatory variables jointly influence sales?
O Yes, since the F-test is significant.
O Yes, since all t-tests are significant.
O Both answers are correct.
b-1. Choose the hypotheses to test whether the unemployment rate is negatively related with sales.
O Họ: 61 = 0; Ha: 81 * 0
O Ho: 81 2 0; HA: 81 < 0
O Hg: 61 s 0; HA: 81 > 0
Transcribed Image Text:a-2. Find the value of the appropriate test statistic. (Round your answer to 3 decimal places.) Test statistic a-3. At the 5% significance level, do the explanatory variables jointly influence sales? O Yes, since the F-test is significant. O Yes, since all t-tests are significant. O Both answers are correct. b-1. Choose the hypotheses to test whether the unemployment rate is negatively related with sales. O Họ: 61 = 0; Ha: 81 * 0 O Ho: 81 2 0; HA: 81 < 0 O Hg: 61 s 0; HA: 81 > 0
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