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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 32 4 44 6 41 10 52 14 53 20 54 a. Let x 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

Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1. 19 2 32 4 44 6 41 10 52 14 53 20 54 a. Let x 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

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 32 4 44 41 10 52 14 53 20 54 a. Let x 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 А. F-5 F-10 30 35 40 45 50 55 Predicted Values Residuals -5 В. -5 F-10 30 35 40 45 50 55 Predicted Values Residuals -5 C. -5 F-10 30 35 40 45 50 55 Predicted Values Residuals 15 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:Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1 19 2 32 4 44 41 10 52 14 53 20 54 a. Let x 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 А. F-5 F-10 30 35 40 45 50 55 Predicted Values Residuals -5 В. -5 F-10 30 35 40 45 50 55 Predicted Values Residuals -5 C. -5 F-10 30 35 40 45 50 55 Predicted Values Residuals 15 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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