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JohnT an assistant. in the district sales ofce of a national cosmetics rm. obtained the following data in 14 districts: District D M P 3

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JohnT an assistant. in the district sales ofce of a national cosmetics rm. obtained the following data in 14 districts: District D M P 3 District. D M P S l 4.2 4.0 3.0 32.6 3 4.3 4.0 5.0 107.7 2 6.5 6.5 5.0 147.0 9 2.6 2.5 5.0 75.6 3 3.0 3.5 4.0 97.3 10 3.1 3.0 4.0 39.0 4 2.1 2.0 3.0 56.2 11 6.2 6.0 4.5 125.1 5 2.9 3.0 4.0 73.4 12 5.5 5.5 5.0 104.6 6 7.2 7.0 3.0 121.3 13 2.2 2.0 4.0 71.5 7 4.3 5.0 4.5 35.6 14 3.0 2.8 3.0 67.4 where D (in 31000 per month} is the expenditure on displays in beauty salons and department. stores1 M [in $1000 per month} is the expenditure on local media. P {in peroentage) is the prorated share of national media advert-ismg, and S (in $1000 per month) is the amount of sales. John's aim is to be able to obtain a linear model to forecast. the amount of sales in a district. e. At 5% level of signicance, is the model a signicant model? f. At 5% level of signicance. test Ho : .5.- = 0 versus Hn : .6,- 96 0 for all i. in the model. g. Use variance ination to determine if multicollineatitv is a problem. 11. Repeat part. (g) but use the condition indices method. i. At. 5% level of signicance, if you need to drop on explanatory variable from the model, which one will you drop? Why? j. Without. using any software. obtain the {Estimated standardized model

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