Fill in the Blank(s)

The managing partner of an advertising agency believes that his companys sales are related to the industry sales. He uses Microsoft Excels Data Analysis tool to analyze

the last four (4) years of quarterly data ( i.e. n = 16 ) with the following results:

Regression Statistics

Multiple R 0.802

R Square 0.643

Adjusted R Square 0.618

Standard Error SYX 0.9224

Observations 16

ANOVA

df SS MS F Sig. F

Regression 1 21.497 21.497 25.27 0.000

Error 14 11.912 0.851

Total 15 33.409

Predictor Coef StdError t Stat P-value

Intercept 3.962 1.440 2.75 0.016

Industry 0.040451 0.008048 5.03 0.000

Durbin Watson Statistic 1.59

1. Referring to the above, the value of the quantity that the least squares regression line minimizes is__________.

1. Referring to the above, the estimates of the Y-intercept and slope are_________

and___________respectively.

-2-

1. Referring to the above, the prediction for a quarter in which X = 120 is Y = ____.

1. Referring to the above, the standard error of the estimate is___________.

1. Referring to the above, the coefficient of determination is ____________.

1. Referring to the above, the standard error of the estimated slope coefficient is _______.

1. Referring to the above, the correlation coefficient is_________.

1. Referring to the above, the partner wants to test for autocorrelation using the Durbin Watson statistic. Using a level of significance of 0.05, the critical value of the test are dL = _______ and dU = ________.

1. Referring to the above, the partner wants to test for autocorrelation using the Durbin Watson statistic. Using a level of significance of 0.05, the decision he should make is ______________________________.

a. there is evidence of autocorrelation.

b. the test is unable to make a definite conclusion.

c. there is no evidence of autocorrelation.

d. there is not enough information to perform the test.