Please try this im short on time . 2. In order to determine the effectiveness of
ID: 3337210 • Letter: P
Question
Please try this im short on time .
2. In order to determine the effectiveness of advertising on sales, a student collected the data on weekly Sales (81000's), Price (dollars) and Advertising Expenditure (Advert)(8100'3) of a road side barbecue shed. He collected the data for one year (52 weeks) and estimated the following regression equations: Sales 115.0 7.52 Price R2 0.42 Sales-1070-735 Price? R2 =0.48 where standard errors are in parenthesis. (o) write an esxprsionfo the aginal efiect of advertising on sales for both models. (b) Find 95% confidence interval for the coefficient of price in equation 1.Explanation / Answer
(b) The coefficient of price in equation 1 follows Student's t distribution with df= n-2; Where n=sample size; In this question n=52
Now, 97.5th percentile of tn-2 = 2.008 where n=50;;; SE = 1.31
So the 95% Confidence Interval of the co efficient will be : [7.52 - 1.31*2.008, 7.52 + 1.31*2.008 ] = [4.89 , 10.15 ]