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The General Manager of Vittoria Corporation wishes to evaluate the effectiveness of the company's advertising expenditures on sales to make better sales projections. He
The General Manager of Vittoria Corporation wishes to evaluate the effectiveness of the company's advertising expenditures on sales to make better sales projections. He decides to develop a regression model by collecting data (in thousands of dollars) for the last 20 months on sales and expenditures on the three types of advertising: TV, Radio and Newspaper. The Excel output is shown below. SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total 0.9610 0.9236 A 209.9103 20.0000 df 3 16 19 SS B 704997.09 9223023.75 Standard Error 271.0028 21.0872 MS 2839342.22 44062.32 Coefficients Intercept -800.8935 TV Radio Newspaper 26.8819 36.0154 (a)Fill in the blanks shown by bold capital letters: A, B, C and D. 4.6342 D t Stat -2.9553 -2.4477 5.8008 6.2467 F 64.44 P-value 0.0093 0.0263 0.0000 0.0000 (b)Is there enough evidence to prove that Sales and Radio expenditures are linearly related? Use a level of significance of 10%. (c)Is the regression model valid? Use a level of significance of 1%. (d)Predict a point estimation of next month's expected sales if the company spends $37,000 on TV ads, $80,000 on Radio ads and $85,000 on Newspaper ads.
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Solution a A B SS for Regression MS Regressiondf for regression SS for Regression 851802666 C Coeffi...Get Instant Access to Expert-Tailored Solutions
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