I need question 5-8 to be answer Use the data in the above Advertising folder. S
ID: 3359833 • Letter: I
Question
I need question 5-8 to be answer
Use the data in the above Advertising folder. Sales, Radio Ads, Newspaper Ads are in $thousands. Sales is the dependent variable.
1. Give the equation of the multiple regression equation.
2. Interpret the slopes in the context of this problem. Please do not use the word "unit" in your sentence and move the decimal appropriately. I've included here the template for interpreting the slope:
For every ___________________(fill in x units) increase in ____________________(fill in what x is in words), then _______________________(fill in what y is in words) will increase by _______________________(fill in the slope in y units)
3. Predict the Sales if $50,000 is spent on Radio Ads and $40,000 is spent on Newspaper Ads. Move the decimal appropriately in your answer.
4. Give the coefficient of determination (for both radio and newspaper ads together) and interpret its meaning.
5. Is there a significant linear relationship between Sales and Radio Ads/Newspaper Ads? Explain, giving the p value. Where to find the p value is explained in the lecture. Do not round off the p value to .000
6. What % of the variation in Sales is due to Radio Ads alone? Show all work
7. What % of the variation in Sales is due to Newspaper Ads alone? Show all work
8. If you were Sales manager, which type of ads would you spend more money on to give you greater sales?
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633 answers
Q 1 )
REGRESSION IN EXCEL
We can solve this question using excel.
First enter data into excel.
Click on Data -------> Data Analysis --------> Regression ------->
Input
Input Y Range : select y values
Input X Range :select values of x1 and x2.
Output Range : select any empty cell
---------> ok
we get the output as
we get the multiple regression as
where y = Responce variable
x1 = Independent variable = Radio
x2 = Independent variable = News paper
we get the output as
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B ) Interpretation of slope : For every ____________1_unit ______ increase in ______Radio___then ________Sales_______________ will increase by ___________13.08__units__________
and
Interpretation of slope : For every ____________1_unit ______ increase in ______News paper___then ________Sales_______________ will increase by ___________16.79__units__________
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Q 3 ) Predict the Sales if $50,000 is spent on Radio Ads and $40,000 is spent on Newspaper Ads.
i.e. x1 = 50000 and x2 = 40000 then y = ?
By using the least square regression equation
we get the predicted sales = 1325756.43 .................( ANswer )
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4 ) From excel output we get the the coefficient of determination (for both radio and newspaper ads together)
Sales Radio Newspaper 973 0 40 1119 0 40 875 25 25 625 25 25 910 30 30 971 30 30 931 35 35 1177 35 35 882 40 25 982 40 25 1628 45 45 1577 45 45 1044 50 0 914 50 0 1329 55 25 1330 55 25 1405 60 30 1436 60 30 1521 65 35 1741 65 35 1866 70 40 1717 7040
Book1 - Excel Sign in -0 × File Home Insert Page Layout Fomulas Data Review View Tell me what you want to do F24 SalesRadi News paper 973 SUMMARY OUTPUT Regression Statistics 625 910 971 25 25 Multiple R R Square Adjusted RSq Standard Error Observations 0.899273236 0.808692352 0.788554705 158.9041256 12 13 14. 15 16 17 ANOVA 162 1577 1044 914 1329 1330 1405 1436 1521 1741 MS gnificance F Regression Residual Total 2028032.69 1014016 4015823 1.5E-07 19 479759.9014 25250.52 21 2507792.591 19 25 coefficients standard Error t Stat P-value Lower 95%Upper 95%ower 95.09 pper 95.0% 21 Intercept Radio News paper 156,430434126.7578563 1.234089 0.232217 -108.877 421.7377-108.877 421.7377 13.08068096 1.759373685 7.434851 4.89E-07 9.39827 16.76309 9.39827 16.76309 16.795278082.963377915 5.667613 1.83E-05 10.59286 22.9977 10.59286 22.9977 24 25 26 27 70 Sheet1! Ready + 100% O Type here to search ^4) ENG 10:43 08-11-2017Explanation / Answer
5. Is there a significant linear relationship between Sales and Radio Ads/Newspaper Ads? Explain, giving the p value. Where to find the p value is explained in the lecture. Do not round off the p value to .000
Comment- see P-value radio is 4.88861E-07 and P-value of Newspaper 183069E-05 both P-values are less than level of sigificance 0.05 that's why both variable are significant .
6. What % of the variation in Sales is due to Radio Ads alone? Show all work
Conclusion - 48.52 % of variation explained by rsales due to the radio.
7. What % of the variation in Sales is due to Newspaper Ads alone? Show all work
Conclusion - 25.52 % of variation explained by sales due to the Newspaper .
8. If you were Sales manager, which type of ads would you spend more money on to give you greater sales?
If am a sales maneger then i am spend mony on radio advertizing .
Becasue the R-square of radio advertizing is greater than newspaper advertizing .
SUMMARY OUTPUT Regression Statistics Multiple R 0.899273 R Square 0.808692 Adjusted R Square 0.788555 Standard Error 158.9041 Observations 22 ANOVA df SS MS F Significance F Regression 2 2028033 1014016.345 40.15823435 1.5E-07 Residual 19 479759.9 25250.52112 Total 21 2507793 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 156.4304 126.7579 1.234088672 0.232217275 -108.877 421.7377 -108.877 421.7377 Radio 13.08068 1.759374 7.434850861 4.88861E-07 9.39827 16.76309 9.39827 16.76309 Newspaper 16.79528 2.963378 5.667612623 1.83069E-05 10.59286 22.9977 10.59286 22.9977