Emily Huggins 9 AM Sedan SUV 28 27 28 29 MPG 25 26 28 29 Truck 26 24 23 22 19 21 22 23 19 18 16 21 22 18 19 20 Sales Advertising 2,010 201 1,850 205 2,400 355 1,575 208 3,550 590 2,015 397 3,908 820 1,870 400 4,877 997 2,190 515 5,005 996 2,500 625 3,005 860 3,480 900 5,500 1,135 1,995 635 1,250 837 6,252 3,262 2,522 1,125 5,002 3,020 6,252 3,002 3,005 3,480 4,252 1,995 2,390 4,390 2,785 2,989 2,785 2,989 1,200 990 1,205 600 997 700 996 625 860 1,012 1,135 635 900 1,300 990 1,205 990 1,500 Assignment 3 PRINT ALL excel work and attach to this document to receive full credit Answer all questions in an excel file Part 1: Hypothesis Testing The mean hourly wage for employees in service industries is currently $37.58. Suppose we take a sample of employees from the manufacturing industry to see if the mean hourly wage differs from the reported mean of $37.58 for the service industries. a. State the null and alternative hypothesis we should use to test whether the population mean hourly wage in the manufacturing industry differs from the population mean hourly wage in the service industries. b. Suppose a sample of 50 employees from the manufacturing industry showed a sample mean of $25.97 per hour. Assume a population standard deviation of $1.30 per hour and compute the p-value c. With = .05 as the level of significance, what is your conclusion? d. Repeat the preceding hypothesis test using the critical value approach. Part 2: ANOVA Table Use the Car Data sheet A research wants to find out if average miles per gallon (mpg) depends on the type of vehicle sedan, SUV, and truck. Use the single-factor ANOVA table. 1. State the null and alternative hypothesis we should use to test whether the type of vehicle affects the average mpg. 2. Using the p-value approach to determine if you should accept or reject the null hypothesis. 3. Using the critical value approach to determine if you should accept or reject the null hypothesis. 4. What does your conclusion to the previous two questions tell you about whether or not the type of vehicle affects average mpg. Part 3: Simple Linear Regression Use the Sales data sheet The small retail clothes industry spends money on advertising in an effort to increase sales. State all answers in terms of units. 1. 2. 3. 4. Create a scatterplot of Advertising on Sales Using the descriptive statistics command, provide the summary statistics output From the summary statistics, are there any outliers in the output? Formulate the simple linear regression model of output. Assume Advertising is your independent variable. 5. State the expected signs of the parameters 6. Interpret the correlation coefficient reported in excel (Multiple R) 2 7. Interpret your R 8. State your ESS, RSS and TSS 9. Is the R2 you calculate by hand different from the output? 10. State your null and alternative hypothesis for the statistical significance of 11. Using the P value approach and the critical value approach, verify whether is significant when alpha = .05 12. Write the estimated simple regression line equation 13. Interpret the effect of Advertising on Sales 14. If company spends $500 on advertising, what will their expected sales be? 15. If the actual value of sales for spending $500 on advertising is $3,545, what is your error