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Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1 19 2 33 4 45 6 40 10 53 14 54 20 55

Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1 19 2 33 4 45 6 40 10 53 14 54 20 55

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow.

Advertising Expenditures Revenue
1 19
2 33
4 45
6 40
10 53
14 54
20 55

- select your answer choices- 

b. p-value 

less than 0.01

between 0.01 and 0.025 

between 0.025 and 0.05

between 0.05 and 0.10

greater than 0.10

Conclusion 

Conclude revenue is related to advertising expenditure

Cannot conclude revenue is related to advertising expenditure

c. The correct plot of the residuals is (A, B, C, D)

d. The residual plot (leads, does not lead) us to question the assumption of a linear relationship between x and y.

Should this model be used, or should we look for a better one? (This model should be used, we should look a better one)

 

Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1 19 2 33 4 45 40 10 53 14 54 20 55 a. Let a equal advertising expenditures and y equal revenue. Use the method of least squares to develop a straight line approximation of the relationship between the two variables (to 2 decimals). b. Test whether revenue and advertising expenditures are related at a 0.05 level of significance. Compute the following (to 2 decimals). SSE SST SSR MSR MSE Compute the F test statistic (to 2 decimals). What is the p-value? Use Table 4 from Appendix B. Select your answer - What is your conclusion? - Select your answer - c. Prepare a residual plot of y-y versus ŷ. Use the result from part (a) to obtain the values of ŷ. Choose the correct residual plot below. Residuals -5 -0 А. --5 -10 30 35 40 45 50 55 Predicted Values Residuals В. -5 -10 30 35 40 45 50 55 Predicted Values Residuals С. -5 -10 30 35 40 45 50 55 Predicted Values Residuals F5 D. -5 -10 30 35 40 45 50 55 Predicted Values The correct plot of the residuals is Select your answer d. What conclusion can you draw from residual analysis? The residual plot - Select your answer - v us to question the assumption of a linear relationship between x and y. Should this model be used, or should we look for a better one? Select your answer -
Transcribed Image Text:Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1 19 2 33 4 45 40 10 53 14 54 20 55 a. Let a equal advertising expenditures and y equal revenue. Use the method of least squares to develop a straight line approximation of the relationship between the two variables (to 2 decimals). b. Test whether revenue and advertising expenditures are related at a 0.05 level of significance. Compute the following (to 2 decimals). SSE SST SSR MSR MSE Compute the F test statistic (to 2 decimals). What is the p-value? Use Table 4 from Appendix B. Select your answer - What is your conclusion? - Select your answer - c. Prepare a residual plot of y-y versus ŷ. Use the result from part (a) to obtain the values of ŷ. Choose the correct residual plot below. Residuals -5 -0 А. --5 -10 30 35 40 45 50 55 Predicted Values Residuals В. -5 -10 30 35 40 45 50 55 Predicted Values Residuals С. -5 -10 30 35 40 45 50 55 Predicted Values Residuals F5 D. -5 -10 30 35 40 45 50 55 Predicted Values The correct plot of the residuals is Select your answer d. What conclusion can you draw from residual analysis? The residual plot - Select your answer - v us to question the assumption of a linear relationship between x and y. Should this model be used, or should we look for a better one? Select your answer -
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