MAR 5621: Advanced Managerial Statistics
Assignment #2
(due in class Thursday, April 15, 2004)
This assignment may be done either individually or in teams of 2 people.
(Teams should turn in
only one paper, with both members’ names on it.)
When reporting numerical results from Excel
output, please round off the excessive decimals (2 or 3 significant digits are more than enough).
Grading: Unless otherwise stated, all problems are worth 2 points per letter.
1.
The following questions deal with the Magazine data we encountered in Assignment 1 and in
class.
DV: Page Costs for a 1page ad
IVs:
Audience (measured in thousands)
Male (percentage of audience that is male)
Income (median household income of audience)
(a) Which pair
of predictors does the best job of predicting PageCosts?
Which is a more useful
prediction equation: the best single predictor, or the best pair of predictors?
Why?
(Use a
measure that allows for comparing between equations with different numbers of predictors.)
(b) (3 pts) If you knew the Audience score for a magazine, would it be helpful for you to know
the Income
score for that magazine also?
Explain why or why not.
Test the null hypothesis that,
holding Audience constant, Income is unrelated to PageCosts.
Report an appropriate pvalue, and
state your conclusion of the hypothesis test in a simple English sentence.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '09
 Regression Analysis, firstyear college grades, nonjargony English

Click to edit the document details