(2)
The following are regression results for the model with five independent variables.
PREDICTOR COEF STDEV
Constant -19.672 5.422
OUTLETS -0.00063 0.00264
CARS 1.7399 0.5530
INCOME 0.4099 0.04385
AGE 2.0357 0.8779
BOSSES -0.0344 0.1880
SSRegression = 1593. 81 SS (total) = 1602.89
b. What percent of the variation in sales does the regression equation explain? (5 pts)
99.43%
c. Conduct a global test to determine if ANY of the independent variables are linearly related to annual sales. Use alpha = .01. (16 pts)
d. What variables would you consider eliminating from this model? Why? Seat of the pants guesses are not acceptable. What is your evidence? (6 pts)
Someone suggests the following model and provides the computer printout below.
PREDICTOR COEF STDEV
Constant -18.924 3.636
CARS 1.6129 0.1979
INCOME 0.40031 0.01569
AGE 1.9637 0.5846
SSE = 9.33
e. How much has R-squared changed from the 5 variable model to the 3 variable model? (6 pts)
thank you
please upvote
Get Answers For Free
Most questions answered within 1 hours.