13.15 Corporate Profits In order to study the relationship of advertising and capital invest- ment with corporate

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13.15 Corporate Profits In order to study the relationship of advertising and capital invest- ment with corporate profits, the following data, recorded in units of $100,000, were collected for 10 medium-sized firms in the same year. The variable y represents profit for the year, x1 represents capital investment, and x2 represents advertising expenditures.

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and an appropriate computer software package, find the least-squares prediction equation for these data.

b. Use the overall F test to determine whether the model contributes significant information for the prediction of y. Use a = 0.01.

c. Does advertising expenditure x2 contribute signifi- cant information for the prediction of y, given that x, is already in the model? Use a = 0.01.

d. Calculate the coefficient of determination, R. What percentage of the overall variation is explained by the model?

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