Akiko Hamaguchi is a manager at a small sushi restaurant

in Phoenix, Arizona. Akiko is concerned that the weak

economic environment has hampered foot traffic in her area,

thus causing a dramatic decline in sales. In order to offset

the decline in sales, she has pursued a strong advertising

campaign. She believes advertising expenditures have a

positive influence on sales. To support her claim, Akiko

estimates the following linear regression model: Sales =

\beta _(0)+\beta _(1) Unemployment +\beta _(2) Advertising +\epsi . A portion of the regression results is shown in the accompanying table.

a. At the 5% significance level, test whether the

explanatory variables jointly influence sales.

a. Yes since all t-tests are significant.

b. Yes since the f-test is significant.

c. Both answers are correct.

Choose the appropriate hypotheses to test whether the predictor variables jointly influence sales.

a. H0: B1= B2=0; HA: at least one Bj >0

b. H0: B1= B2=0; HA: at least one Bj

c. H0: B1=B2=0; HA: at least one Bj is not equal to 0

Find the value of the appropriate test statistic:

Test statistic ___________

Choose the hypotheses to test whether the unemployment rate is negatively related with sales.

H0: ________________0; versus HA: _____________________0

Find the p-value.

a. p-value <.01>

b..01

c..025

d..05

e. p-value > or equal .10

At the 1% significance level, what is the conclusion of the test?

a. do not reject H0; we can conclude that the unemployment rate and sales are positively related.

b. do not reject H0; we cannot conclude that the unemployment rate and sales are positively related.

c. do not reject H0; we can conclude that the unemployment rate and sales are negatively related.

d. do not reject H0; we cannot conclude that the unemployment rate and sales are negatively related.

Choose the appropriate hypotheses to test whether advertising expenditures are positively related with sales.

H0: ________________________0; versus HA: ______________________________0

Find the p-value

a. p-value <.01>

b..01

c..025

d..05

e. p-value > or equal .10

At the 1% significance level, what is the conclusion to the test?

a. Reject H0; advertising expenditures and sales are positively related.

b. Reject H0; advertising expenditures and sales are not positively related.

c. Do not reject H0; we can conclude advertising expenditures and sales are positively related.

d. Do not reject H0; we cannot conclude advertising expenditures and sales are positively related.

1. Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Akiko is concerned that the weak economic environment has hampered foot traffic in her area, thus causing a dramatic decline in sales. In order to offset the decline in sales, she has pursued a strong advertising campaign. She believes advertising expenditures have a positive influence on sales. To support her claim, Akiko estimates the following linear regression model: Sales = Bo + B, Unemployment + SAdvertising + &. A portion of the regression results is shown in the accompanying table. NOVA df 55 MS F Significance F egression 2 72.6374 36.3187 8.760 0.0034 esidual 14 58.0438 4.1460 atal 16 130.681 Standard Lower Upper Coefficients Error t Stat p-value 95% 954% tercept 17.5060 3.9817 4.3966 0.0006 8.97 26.05 employment -0.6879 0.2997 -2.2955 0.0377 -1.33 -0.05 Ivertising 0.0266 0.0068 3.9322 0.0015 0.01 0.04 a. At the 5% significance level, test whether the explanatory variables jointly influence sales