Solved

A Local Grocery Store Wants to Predict the Daily Sales

Question 51

Multiple Choice

A local grocery store wants to predict the daily sales in dollars. The manager believes that the amount of newspaper advertising significantly affects the store sales. The manager randomly selects 7 days of data consisting of daily grocery store sales (in thousands of dollars) and advertising expenditures (in thousands of dollars) . The Excel/Mega-Stat output given below summarizes the results of fitting a simple linear regression model using this data.
Regression Analysis
r20.762n7R0.873k 1  Std. Error 11.547  Dep. Var. Sales \begin{array}{rc}\mathrm{r}^{2} 0.762 & \mathrm{n} 7 \\\mathrm{R} 0.873 & \mathrm{k} \text { 1 } \\\text { Std. Error 11.547 } & \text { Dep. Var. Sales }\end{array}
ANOVA
table
 Source SSdfMSFp-value  Regression 2,133.333312,133.333316.00.0103 Residual 666.66675133.3333 Total 2,800.00006\begin{array}{rrrrrr}\hline \text { Source } & S S & d f & M S & F & p \text {-value } \\\hline \text { Regression } & 2,133.3333 & 1 & 2,133.3333 & 16.00 & .0103 \\\text { Residual } & 666.6667 & 5 & 133.3333 & & \\\hline \text { Total } & 2,800.0000 & 6 & & &\\\hline\end{array}

 Regression output \text { Regression output }\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad Confidence interval \text { Confidence interval }
 Variables Coefficients  std. error t(df=5)  p-value 95%95% upper  lower  Intercep 63.33337.96827.948.000542.850583.8162 Advertising 6.66671.66674.000.0103\begin{array}{rrrrrrrr}\hline\text { Variables} & \text { Coefficients } & \text { std. error } & t(d f=5) & \text { p-value } & 95 \% &95 \% \text { upper } \\& & & & & \text { lower } & \\\hline \text { Intercep } & 63.3333 & 7.9682 & 7.948 & .0005 & 42.8505 & 83.8162 \\\text { Advertising } & 6.6667 & 1.6667 & 4.000 & .0103 & &\end{array}
-In testing the simple linear regression equation for significance at a significance level of 0.05,what is the critical value for the F test?


A) 16.26
B) 10.01
C) 6.61
D) 230.2
E) 5.79

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents