The dataset below provides data on sales in dollars and the number of radio and TV ads and newspaper ads promoting the concerts for a group of cities. Develop a multiple regression model using the number of radio and TV ads and newspaper ads as the explanatory variables and sales as the response variable. (Solve in Excel) a) Interpret the adjusted R2. Conduct an Overall Test for Significance. State the hypotheses and the P-value and interpret the results of the overall test for significance in context to this dataset. Conduct individual hypothesis tests for slopes. State the hypothesis and the P-values and interpret the results of each test in context to this dataset.
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.
Q: The dataset below provides data on sales in dollars and the number of radio and TV ads and newspaper ads promoting the concerts for a group of cities. Develop a multiple regression model using the number of radio and TV ads and newspaper ads as the explanatory variables and sales as the response variable. (Solve in Excel)
- a) Interpret the adjusted R2.
- Conduct an Overall Test for Significance. State the hypotheses and the P-value and interpret the results of the overall test for significance in context to this dataset.
- Conduct individual hypothesis tests for slopes. State the hypothesis and the P-values and interpret the results of each test in context to this dataset.
| Concert Sales | ||
| Thousands of | Thousands of | |
| Sales ($1000) | Radio&TV ads | Newspaper ads |
| $1,119.00 | 0 | 40 |
| $973.00 | 0 | 40 |
| $875.00 | 25 | 25 |
| $625.00 | 25 | 25 |
| $910.00 | 30 | 30 |
| $971.00 | 30 | 30 |
| $931.00 | 35 | 35 |
| $1,177.00 | 35 | 35 |
| $882.00 | 40 | 25 |
| $982.00 | 40 | 25 |
| $1,628.00 | 45 | 45 |
| $1,577.00 | 45 | 45 |
| $1,044.00 | 50 | 50 |
| $914.00 | 50 | 50 |
| $1,329.00 | 55 | 20 |
| $1,330.00 | 55 | 20 |
| $1,405.00 | 60 | 30 |
| $1,436.00 | 60 | 30 |
| $1,521.00 | 65 | 35 |
| $1,741.00 | 65 | 35 |
| $1,866.00 | 70 | 40 |
| $1,717.00 | 70 | 40 |
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