Novo Nordisk A/S,a Danish firm,sells insulin and other drugs worldwide.Activella,an estrogen and progestin hormone replacement therapy sold by Novo-Nordisk,is examined using 33 quarters of data
Y = -204 + .34X1 - .17X2
(17) 0) (-1.71)
Where Y is quarterly sales of Activella,X1 is the Novo's advertising of the hormone therapy,and X2 is advertising of a similar product by Eli Lilly and Company,Novo-Nordisk's chief competitor.The parentheses contain t-values.Addition information is: Durbin-Watson = 1.9 and R2 = .89.
Using the data for Novo-Nordisk,
A) Both X1 and X2 are statistically significant.
B) Neither X1 nor X2 are statistically significant.
C) X1 is statistically significant but X2 is not statistically significant.
D) X1 is not statistically significant but X2 is statistically significant.
E) The Durbin-Watson statistic shows significant problems with autocorrelation
Correct Answer:
Verified
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