Regression Analysis The local grocery store wants to predict the daily sales in dollars.The manager believes that the amount of newspaper advertising significantly affects the store sales.He randomly selects 7 days of data consisting of daily grocery store sales (in thousands of dollars)and advertising expenditures (in thousands of dollars).The Excel/Mega-Stat output given above summarizes the results of the regression model. In testing the simple linear regression equation for significance at a significance level of .05,what is the rejection point condition? A)Reject H₀ if F 16.26 B)Reject H₀ if F 10.01 C)Reject H₀ if F 6.61 D)Reject H₀ if F 230.2 E)Reject H₀ if F 5.79

Question

Regression Analysis The local grocery store wants to predict the daily sales in dollars.The manager believes that the amount of newspaper advertising significantly affects the store sales.He randomly selects 7 days of data consisting of daily grocery store sales (in thousands of dollars)and advertising expenditures (in thousands of dollars).The Excel/Mega-Stat output given above summarizes the results of the regression model. In testing the simple linear regression equation for significance at a significance level of .05,what is the rejection point condition? A)Reject H₀ if F > 16.26 B)Reject H₀ if F > 10.01 C)Reject H₀ if F > 6.61 D)Reject H₀ if F > 230.2 E)Reject H₀ if F > 5.79

Quizplus · Accepted Answer

The output shows that the F-statistic is 18.467 and the p-value is 0.012 which is less than 0.05. Therefore, we reject the null hypothesis H₀ and conclude that the amount of newspaper advertising significantly affects the store sales. Looking at the ANOVA table, we can find the rejection point condition for the F-test by looking at the critical value in the row for the numerator degrees of freedom (df1) and denominator degrees of freedom (df2) at the 0.05 significance level, which is 6.61. Therefore, we reject H₀ if F > 6.61. Choice C is correct.

Regression Analysis the Local Grocery Store Wants to Predict