For the past 10 years, you have been observing the sales of your company since you embarked on an aggressive advertising campaign. You have been recording the amounts spent on advertising and the corresponding sales as follows:YearAdvert (X)Sales (Y)2001104420029402003114220041246200511482006125220071354200813582009145620101560 You would like to determine whether a relationship exists between your two variables of interest and therefore decide to run a regression.Specify the estimation model you will use (the econometric form).Identify the independent and the dependent variables.Use an econometric package of your choice (EViews, SPSS, STATA etc) to estimate the model.From the regression output, report the coefficients, standard errors, t-statistics, probability and R-squared (report the results in a table).Re-write the specified model in (a) with values from the regression results and interpret the coefficients.

Answered: For the past 10 years, you have been…

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter5: Exponential And Logarithmic Functions

Section5.5: Exponential And Logarithmic Models

Problem 4ECP

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For the past 10 years, you have been observing the sales of your company since you embarked on an aggressive advertising campaign. You have been recording the amounts spent on advertising and the corresponding sales as follows:

Year	Advert (X)	Sales (Y)
2001	10	44
2002	9	40
2003	11	42
2004	12	46
2005	11	48
2006	12	52
2007	13	54
2008	13	58
2009	14	56
2010	15	60

You would like to determine whether a relationship exists between your two variables of interest and therefore decide to run a regression.

Specify the estimation model you will use (the econometric form).
Identify the independent and the dependent variables.
Use an econometric package of your choice (EViews, SPSS, STATA etc) to estimate the model.
From the regression output, report the coefficients, standard errors, t-statistics, probability and R-squared (report the results in a table).
Re-write the specified model in (a) with values from the regression results and interpret the coefficients.

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