A market researcher is studying on-line subscription services. She is particularly interested in what variables relate to the number of subscriptions for a particular on-line service. She is able to obtain the following sample information on 25 on-line subscription services. The following notation is used: ( Please refer to the Full table on the Excel sheet)

Sub

=

Number of subscriptions (in thousands)

Web page hits

=

Average monthly count (in thousands)

Adv

=

The advertising budget of the service (in $ hundreds)

Price

=

Average monthly subscription price ($)

Service

Sub

Web Page Hits

Adv

Price

1

37.95

588.9

13.2

35.1

2

37.66

585.3

13.2

34.7

3

37.55

566.3

19.8

34.8

23

38.83

629.6

22.0

35.3

24

38.33

680.0

24.2

34.7

25

40.24

651.2

33.0

35.8

a.Determine the regression equation and analyze the coefficients

b.Conduct a test of hypothesis to determine whether any of the regression coefficients are not equal to zero.

Would you consider deleting any coefficients?

c.Explain the Goodness of fit of the regression line

d.Explain the confidence interval at the 99% confidence level

e.Is the whole regression significant at the 1% level of significance? Explain

f.What is the price elasticity of demand? Explain the coefficient.