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Philco Pharmacy wishes to determine the relationship between advertising expense and sales revenue the following month. Philco ran an Excel regression analysis on 36
Philco Pharmacy wishes to determine the relationship between advertising expense and sales revenue the following month. Philco ran an Excel regression analysis on 36 months of data and derived the Excel out below. A SUMMARY OUTPUT Regression Statistics Multiple R 0.8132067 R Square 0.6613052 Adjusted R Square 0.6513436 Standard Error 503027.26 Observations 36 > ANOVA df SS MS F ignificance F ? Regression 3 Residual Total 5 Intercept 1 1.67979E+13 1.67979E+13 66.38535266 1.67E-09 34 8.60324E+12 2.53036E+11 35 2.54012E+13 Coefficients Standard Error t Stat -2618921 1183395.004 -2.213057494 P-value 0.033708295 ???? 1.67328E-09 3 Advertising Expens 60.503654 7.425837938 Philco's advertising expenses have ranged from $138,000 per month to $180,000 per month since the company was started 3 years ago. Question #5-Comment on the Goodness of Fit of this regression model. (2 marks) Give a complete and specific answer suitable for a second year college accounting student. 2 A BI9
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