Suppose data on advertising expenditures and revenue (both in thousands of dollars) for a certain restaurant follow.AdvertisingExpendituresRevenue1182324436.411052145355(a) Let x equal advertising expenditures (in thousands of dollars) and y equal revenue (in thousands of dollars). Use the method of least squares to develop a straight line approximation of therelationship between the two variables. (Round your numerical values to two decimal places.)(b) Test whether revenue and advertising expenditures (both in thousands of dollars) are related at a 0.05 level of significance. (Use the F test.)State the null and alternative hypotheses.Ho: B, 2 0Ha: P1 <0O Hoi B1= 0Ha: B1+ 0Ho: Po # 0= 0Ho: B1 + 0Ha: B1O Hoi PoHa: Po + 0= 020 Find the value of the test statistic. (Round your answer to two decimal places.)Find the p-value. (Round your answer to three decimal places.)p-valueState your conclusion.Reject Ho. We cannot conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant.Do not reject Ho. We conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant.Reject Ho. We conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant.Do not reject Ho: We cannot conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant.0.

The independent variable is Advertising Expenditures. The dependent variable is Revenue. This is…

Answered: Suppose data on advertising…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 57EQ

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Assume that the table below displays the number of freight tonnes carried (in millions) in Australia between 1990 and 2015.Year199019952000200520102015Number of freight tonnes (millions)6684104126160186a) Draw a scatter diagram of the data.b) Find the least squares regression line of number of freight tonnes (in millions) carried on a year. (Note: Use only the last two digits of the year).c) Draw the line in (b) on the scatter diagram in (a). Comment on whether you feel the line is a good fit of the data.d) Use the line in (b) to predict the number of freight tonnes that might be carried in Australia in both 2020 and 2025.e) Do you think your predictions in (d) will be relatively accurate? Why or why not?
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