Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Philco Pharmacy wishes to determine the relationship between advertising expense and sales revenue the following month. Philco ran an Excel regression analysis on 36

image text in transcribedimage text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting An Introduction to Concepts Methods and Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

11th edition

1111571260, 978-1111571269

More Books

Students also viewed these Accounting questions

Question

Why are you interested in our program?

Answered: 1 week ago

Question

Explain the relation between return and risk.

Answered: 1 week ago