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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

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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 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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