Purchase Solution

Coffee Time: Multiple regression, Hypothesis testing

Not what you're looking for?

Ask Custom Question

A. Laura wanted to build a multiple regression model based on advertising expenditures and the company's price index. Based on the selection of all normal values she obtained the following:
1) Multiple R = 0.738
2) R-square = 0.546
By using lagged values she came up with the following:
3) Multiple R = 0.755
4) R-square = 0.570
Explain the differences in using these different models. How could her company further optimize this model?

b. Tourism is one consideration for Laura's company future. A survey of 1,233 visitors to Mumbai last year revealed that 110 visited a small café during their visit. Laura claims that 10% of tourists will include a visit to a café. Use a 0.05 significance level to test her claim. Would it be wise for her to use that claim in trying to convince management to increase their advertising spending to travel agents? Explain.
Finally, what additional strategy (or variation on a given strategy) would you recommend to Laura to solve the challenges given?

Purchase this Solution

Solution Summary

There are answers to questions on
1)multiple regression model (advertising expenditures and coffee times' price index) and
2) hypothesis testing
for Coffee Time.

Purchase this Solution


Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.