Hypothesis testing for proportion and regression model
Not what you're looking for?
A. Laura wanted to build a multiple regression model based on advertising expenditures and coffee times price index. Based on the selection of all normal (i.e., concurrent) values she obtained the following:
1) Multiple R = 0.738
2) R-square = 0.546
By using lagged (time lapse between independent and dependent) 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 CoffeeTime further optimize this model?
b. Tourism is one consideration for CoffeeTime's 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.
Purchase this Solution
Solution Summary
This solution explains how to interpret the results of regression models and to judge which model is better. It discusses the current effect and stock effect of advertising expenditure while deciding on which model is better.
Solution Preview
a) The first model is concurrent model. In this we assume that the adverstisement expenditure in this period affects the coffee times price index for this period. However, this may not be true. The adevrtising has two type of effects..one is current effect and other is stock effect i.e. the adevrstiosements done in previous periods will also have an impact on the coffee price inidex of this period. So, in the second model, we have ...
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.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
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.