Question

In a study to identify factors that influence territory sales and to assess the relative importance of the factors, four predictor variables were chosen, as defined below. Data from a random sample of 25 sales territories of a firm's national sales organization were analyzed. The first order linear model is: The purpose of this exercise is to build a multiple regression model to predict y.

Y = sales credited to territory salesman X1 = length of time in the territory in months X2 = industry sales, in units, of products sold in territory. X3 = advertising dollars in territory X4 = weighted average of past market share magnitudes for 4 previous years

y	x1	x2	x3	x4
3670	43.1	74065	4583	2.51
3474	108.1	58117	5540	5.51
2295	13.8	21119	2950	10.91
4676	186.2	68521	2243	8.27
6126	161.8	57805	7747	9.15
5032	365	50935	3141	8.54
3368	220.3	65602	2086	7.07
6520	127.6	46177	8846	12.54
4876	105.7	42053	5673	8.85
2468	57.7	36830	2762	5.38
2533	23.6	33613	1992	5.43
2408	13.8	21413	1972	8.48
2337	13.8	20417	1737	7.8
4587	87	36272	10694	10.34
2729	165.9	23093	8619	5.15
3289	116.3	26879	7748	6.64
2801	42.3	39572	4566	5.45
3264	52.8	51866	6023	6.31
3454	165	58750	3721	6.35
1741	10.6	23991	861	7.37
2036	13.8	25695	3572	8.39
1578	8.1	23736	2846	5.15
4167	58.5	34314	5060	12.88
2800	21.1	22810	3552	9.14
2135	8.9	37807	402	5.51

a)Write a first order model for sales, y, as a function of advertising dollars in a territory.

b) Write a second order model for sales, y, as a function of advertising dollars in a territory.

c) Test to determine if there is a curvilinear relationship between worldwide gross revenues and movie budget.

d)Is there evidence to indicate there is a curvilinear relationship between worldwide gross revenues and movie budget?

e) What is the value of test statistics?

Answer 1