Question 26 5 pts A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms. He estimates the model: Sales = Bo + B1 Advertising + & The following table shows a portion of the regression output: Coefficients Standard Error t-stat p-value Intercept 40.10 14.08 2.848 0.0052 Advertising 2.88 1.52 -1.895 0.0608 When testing whether the slope coefficient differs from 3, the value of the t test statistic is O -1.895 O -0.079 O 0.079 1.895Question 28 5 pt: An analyst is trying to purchase a large tract of land. The current owner of the tract has already subdivided the land into separate building lots and has prepared the lots by removing some of the trees. The developer wants to forecast the value of each lot. From previous experience, she knows that the most important factors affecting the price of a lot are size, number of mature trees, and distance to the lake. She runs the following multiple regression model for her analysis: Price = ,80 + [31 LotSize + gTrees + g Distance l a The correlation matrix is shown below. A_Correlations . Price Lot size Trees Distance Price 1.0000 0.3035 0.3891 -O.2326 Lot size 0.3035 1.0000 0.2857 -0.1895 Trees 0.3891 0.2857 1.0000 0.0794 Distance -0.2326 0.1895 0.0794 1.0000 Which two independent variables have the largest correlation? Lot Size and Distance Lot Size and Trees Trees and Distance Price and Trees