problem7S06key

problem7S06key - Print regression results Write out the...

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E303 Davis Spring 2006, Problem Set #7 Regression Analysis Consider the following data Sales Adv Y i X i 3 1 4 2 6 3 5 4 7 5 6 6 5 7 9 8 10 9 9 10 1. Input this data on a spreadsheet . Using the regression option, generate regression predictions. Write your results as an equation, as we did in class. In particular, (a) Write the regression equation, with estimated coefficients, (b) Below the regression equation, list in parentheses the standard errors of the coefficient estimates (c) To the right of the estimated equation write R 2 = ^ Equation : ____ Y_= ___ 2.733____+ 0.667 X i __________________ R 2 = .757 Std Errors (0.827 ) ( 0.133 )
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2. Multivariate Regression . Now add to your above regression in a price variable, with values: 8, 7.5, 7.25, 7.25, 6, 6.75, 6, 5, 4.4, 5.2. Estimate the new regression equation.
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Unformatted text preview: Print regression results. Write out the estimated demand function, as in 1 above. Equation: ____ Y_= __17.68_ + 0.005 – 1.78 _______________________ R 2 = 0.868 Std Errors ( 6.19) (0.133 ) ( 0.734) 3. Evaluating regression results: A Descriptive Statistic . With the data you generated in (2) above do the following. a. Interpret the R 2 . (In a sentence) 86.8% of the movement in the sales is explained by movements in price and advertising. __________________________________________________________________ b. At an approximate 95% level of confidence, can you conclude that price affects sales? Explain. Price Affects Sales? Y /N (circle one) Reason : The interval about price, -3.52 to-0.048 doesn’t include 0 ....
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This note was uploaded on 04/12/2010 for the course ECON 303 taught by Professor Shrestha during the Fall '08 term at VCU.

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problem7S06key - Print regression results Write out the...

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