Coop Ale Works is a beer brewing company in Oklahoma. They want to try to predic
ID: 3218535 • Letter: C
Question
Coop Ale Works is a beer brewing company in Oklahoma. They want to try to predict their sales in thousands of dollars (y) by using the amount spent on advertising and promotions in thousands of dollars (x). They collect data from 10 sales periods, run it through a computer and get the following output for a regression model. Continuing with the Coop Ale Works Data where data is collected over 10 sales periods, an analysis of variance table is calculated for the linear regression using advertising expenditure in thousands of dollars to predict sales in thousands of dollars. Here is the partial ANOVA table. Use this information for 12 through 17. A) What is the Explained Variation in the regression model? B) What is the Total Variation in the regression model? C) For the hypothesis test H_0: beta_1 = 0 and H_a: beta_1 notequalto 0, what is the value of the F test statistic F_model D) For the hypothesis test H_o: beta_1 = 0 and H_a beta_1 notequalto 0, what is your conclusion at a = 0.01 E) The R^2 value in the linear regression is .5755. Interpret this value. F) What is the estimate of theta^2_e, the variance term in the linear regression model?Explanation / Answer
from above
a) explained variation SSR=8363
b)total variation SST=8383+6167 =14530
c) F test stat=10.8487
d) we reject nulll. hypothesis, as F test is significant
e)R2 =SSR/SST =0.5756
above gives % of variation explained in Y due to X
f)estimate =MSE =770.875
df sum Mean sq F value Pr>F regression 1 8363 8363 10.84871 0.011 residuals 8 6167 770.875 total 9