1.The accompanying computer excel output (please see attachment on Blackboard) provides details of data and analysis on the topic of 'firm sales'.A
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1.     The accompanying computer excel output (please see attachment on Blackboard) provides

details of data and analysis on the topic of "firm sales". A manager wishes to study the relation between sales (Y), advertising spending (X1, in $), firm size (X2), and financial leverage (X3).

 

 

The output includes a listing of all 60 observations; and, the results of a regression analysis that uses firm sales as the dependent variable, and advertising, firm size, and financial leverage.

 

a.      Write out the regression equation, with specific intercept and slope estimates. Remember that the regression is already estimated for you so you only need to write the equation of the estimated model. For example: Y=....

 

b.     For the first row of actual data from the excel file, use the equation in (a) to "predict" the value of Y. For this row, also compute the "residual" (actual value minus the predicted value).  Note: Only use the first raw of data and not the whole data set.

 

 

c.      Evaluate the statistical significance of each of the three slope estimates. This can be done in a very summary way. Use a significance level of 0.05. Note: You can either use the p-value or t-statistics to determine whether the coefficients are significant or not.

 

 

d.     Use the R-square and F-test to evaluate the overall reliability of the regression.  

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