Question

A manager at a company analyzed the relationship between the weekly record sales and factors affecting its sales with a sample of 200 records. The independent variables included in the regression model are as follows: x1: Advertising budget (thousands of dollars), x2: No. of plays on radio per week, x3: Attractiveness of band, The following ANOVA summarizes the regression results.

Table 1: ANOVA

Source of Variation	df	Source of Squares	Mean Square	F	R Squared
Regression		861377.418			0.665
Residual or Error		434574.582
Total	199	1295952.0

1.  What are the degrees of freedom for Regression and Residual, respectively?

2. What are the value of the Regression mean square (MSR) and the Error mean square (MSE), respectively?

3. Evaluate this model with a global test at the 0.05 level of significance. The null hypothesis for this hypothesis test is ________.

4. Compute the global F-statistic for the model.

5. Find F-value for the critical value.

6. State a conclusion.

Answer 1