1. A Breusch Pagan statistic of 5.9 with a degree of freedom of 2 was calculated for the full model. Does this indicate a problem with the model? Conduct an appropriate test using an alpha of 5%. Use your word template to answer then copy your answer in the space below

2. A hypothetical company examined the relationship between monthly sales (in millions of dollars) and a selection of advertising choices - television, radio, magazines, and online - for 10 companies in 2014. All advertising expenditures are in millions of dollars. The results can be found in Question 2 output.

How does observation 10 impact the value of the intercept?

SUMMARY OUTPUT Regression Statistics Multiple R 0.685669608 R Square 0.470142811 Full Model Adjusted R Square Standard Error 0.235584675 Observations 198 ANOVA df S MS F Significance F Regression 3 9.553593743 3.184531248 57.37879771 1.34745E-26 Residual 194 10.76702696 0.055500139 Total 197 20.32062071 Coefficients Standard Error t Stat P-value VIF Intercept 1.594045443 0.163519796 9.748333137 1.58457E-18 Net Income 1.22071E-05 3.50322E-06 3.484549254 0.000609383 1.12143 Efficiency Ratio -0.015282909 0.001759234 -8.687250374 1.53408E-15 1.19472 Total Risk Based Capital 0.022671698 0.004675071 4.849486971 253323E-06 1.09988 SUMMARY OUTPUT Regression Statistics Multiple R 0.317333614 arenbs y 0.100700623 Reduced Model Adjusted R Square 0.0961 12361 Standard Error 0.305346253 Observations 198 ANOVA df S MS F Significance F Regression 2046299159 2046299159 21.94744325 5.23106E-06 Residual 196 18.27432155 0.093236334 Total 197 20.32062071 Coefficients Standard Error t Stat P-value VIF Intercept 0.935229026 0.038300303 24.4183195 233679E-61 Net Income 2.00872E-05 4.28773E-06 4.684809841 5.23106E-06