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A market researcher is studying online subscription services. She is particularly interested in what variables relate to the number of subscriptions for a particular online
A market researcher is studying online subscription services. She is particularly interested in what variables relate to the number of subscriptions for a particular online service. She is able to obtain the following sample information on 25 on-line subscription services. The following notation is used: Sub = Number of subscriptions (in thousands) Web page hits = Average monthly count {in thousands} Adv = Advertising budget ofthe service (in $ hundreds) Price = Average monthly subscription price (35) Service Sub Web Page Hits Adv Price Service Sub Web Page Hits Adv Price 1 37.95 588.9 13.2 35.1 14 33.39 586.5 15.4 35.5 2 37.66 585.3 13.2 34.7 15 37.29 544.8 11.8 34.9 3 37.55 566.3 19.8 34.8 16 39.15 611.1 24.2 35.8 4 33.73 642.9 17.6 35.1 17 33.29 643.3 17.6 35.3 5 37.67 624.2 17.6 34.6 18 38.89 635.6 19.8 34.8 6 33.23 683.9 15.4 34.8 19 37.83 598.9 15.4 35.1 7 36.98 571.9 11.8 34.7 28 39.37 657.8 22.8 35.3 8 33.23 584.3 28.6 35.3 21 37.81 595.2 15.4 35.1 9 33.95 685.8 28.6 35.1 22 37.42 528.8 19.8 35.1 18 39.27 676.3 17.6 35.6 23 33.83 629.6 22.8 35.3 11 33.38 587.4 17.6 34.9 24 33.33 688.8 24.2 34.7 12 33.84 576.4 22.8 35.4 25 48.24 651.2 33.8 35.8 13 33.14 578.8 17.6 35.8 a. Determine the regression equation. (Negative value should be indicated with a minus sign. Round your answers to 4 decimal places.) \"73> II + X1 + X2 + X3 b. Conduct a global test of hypothesis to determine whether any of the regression coefficients are not equal to zero. Use a = 0.05. (Round your answers to 2 decimal places.) H8351=52=Bs=0 H1: Not all Bl's = zero. Reject H0 if F :- The null is in favor of the alternative, of the independent variables matter(s). c. Conduct a test for the individual coefficients. Would you consider deleting any coefficients? All coefficients are Do not delete any.e. Develop a histogram of the residuals. Do you see any problems with the normality assumption? ! g
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