Alan Bissell, a market analyst for City Sound Online Mart, is analyzing sales from heavy metal song downloads.Alan's dependent variable is annual heavy metal song download sales (in $1,000,000's), and his independent variables are website visitors (in 1,000's)and type of download format requested (0 = MP3, 1 = other).Regression analysis of the data yielded the following tables. $$\begin{array} { | c | c | c | c | c | } \hline & \text { Coefficients } & \begin{array} { c } \text { Stardard } \ \text { Error } \end{array} & \boldsymbol { t } \text { Statistic } & p \text {-value } \ \hline \text { Intercept } & 1.7 & 0.384212 & 4.424638 & 0.00166 \ \hline \boldsymbol { x } _ { 1 } \text { (website visitors) } & 0.04 & 0.014029 & \mathbf { 2 . 8 5 1 1 4 6 } & 0.019054 \ \hline \mathbf { x } _ { 2 } \text { (download fommat) } & - 1.5666667 & 0.20518 & - 7.63558 & \mathbf { 3 . 2 1 E - 0 5 } \ \hline \end{array}$$ Alan's model is ________________. A) = 1.7 + 0.384212x₁ + 4.424638x₂ + 0.00166 x₃ B) = 1.7 + 0.04 x₁+ 1.5666667 x₂ C) = 0.384212 + 0.014029 x₁+ 0.20518 x₂ D) = 4.424638 + 2.851146 x₁- 7.63558 x₂ E) = 1.7 + 0.04 x₁- 1.5666667 x₂

Question

Quizplus · Accepted Answer

The correct model is E) ŷ = 1.7 + 0.04 x₁ - 1.5666667 x₂. This is because the coefficients from the regression analysis table directly translate into the equation for predicting the dependent variable (annual heavy metal song download sales). The intercept is 1.7, the coefficient for website visitors (x₁) is 0.04, and the coefficient for download format (x₂) is -1.5666667, indicating the respective contributions of each independent variable to the model.

Alan Bissell, a Market Analyst for City Sound Online Mart