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Suppose You've Run a Regression Relating Revenues to TV Ads

Question 50

Multiple Choice

Suppose you've run a regression relating Revenues to TV Ads and Online Ads. You are willing to make the necessary assumptions to deduce causality and run hypothesis tests. Your results are as follows:  Coefficients  Stardard Error  t-Stat  P-value  Iratercept 5988.0431072202.1367652.7191967380.006881952 IV Ads 199.632021227.826586737.1741469124.63154E12 Orline Ads 53.5209242941.08181151.3027888090.193533758\begin{array} { | l | c | c | c | c | } \hline & \text { Coefficients } & \text { Stardard Error } & \text { t-Stat } & \text { P-value } \\\hline \text { Iratercept } & 5988.043107 & 2202.136765 & 2.719196738 & 0.006881952 \\\hline \text { IV Ads } & 199.6320212 & 27.82658673 & 7.174146912 & 4.63154 \mathrm { E } - 12 \\\hline \text { Orline Ads } & 53.52092429 & 41.0818115 & 1.302788809 & 0.193533758 \\\hline\end{array} If you tested the null hypothesis that Online Ads have no impact on Revenues at the 90% confidence level (i.e., 90% degree of support) , you would:


A) Reject, and conclude Online Ads do impact Revenues
B) Fail to reject, and conclude Online Ads do impact Revenues
C) Fail to reject, and conclude there is insufficient evidence to establish that Online Ads impact Revenues
D) None of the answers is correct

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