A market researcher is studying on line subscription services. She is particularly interested in what variables relate
Question:
A market researcher is studying on line subscription services. She is particularly interested in what variables relate to the number of subscriptions for a particular on line service. She is able to obtain the following sample information on 25 on line subscription services. The following notation is used:
Sub = Number of subscriptions (in thousands)
Web page hits = Average monthly count (in thousands)
Adv = The advertising budget of the service (in $ hundreds)
Price = Average monthly subscription price ($)
a. Determine the regression equation.
b. Conduct a global test of hypothesis to determine whether any of the regression coefficients are not equal to zero.
c. Conduct a test for the individual coefficients. Would you consider deleting any coefficients?
d. Determine the residuals and plot them against the fitted values. Do you see any problems?
e. Develop a histogram of the residuals. Do you see any problems with the normality assumption?
Step by Step Answer:
Statistical Techniques In Business And Economics
ISBN: 9781260239478
18th Edition
Authors: Douglas Lind, William Marchal, Samuel Wathen