Bus Inc. sells widgets. Sales dept says there is a positive linear relationship between the advertising expenditures and sales. Sales department recently analyzed the sales over 42 weeks. For each week in the sample, Bus Inc sales (SALES) and their advertising expenditures (ADVERT) were recorded. A simple regression analysis was made using this data and the model:
SALES = β0 + β1 ADVERT + ε
Resulting output is given below. Note that some parts of the output are deleted on
purpose and some of the results are left as"?".
Response (Dependent variable): SALES
Term Estimate Std Error t Ratio
Intercept 483.402 157.128 ?
ADVERT 1.43629 0.149238 9.62
Analysis of Variance
Source Squares D.F.
Model 14,123,027 a
Error b c
Total 20,222,069 41
(a) Fill out all the missing values in the output?
(b) What is the interpretation of β1 in the context presented here ? Be precise.
The solution provides step by step method for the calculation of regression model . Formula for the calculation and Interpretations of the results are also included.