Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow.   Advertising Expenditures Revenue 1 19 2 33 4 44

MATLAB: An Introduction with Applications
6th Edition
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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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 44
6 41
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.
Transcribed Image Text: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.
D.
-5
F-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
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:D. -5 F-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 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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