Attempting to analyze the relationship between advertisingx

Question

Econ 310, Spring 2014- Week 13:

Problem 1-

Table 1 - Statistics for 3 treatment
Statics	1	2	3
n	5	5	5
x-	10	15	20
s2	50	50	50

(1) Compute the ANOVA table

(2) Test whether the 3 treatment have the same mean.

Problem 2- Attempting to analyze the relationship between advertising(X) and sales(Y), the owner of a furniture store recorded the monthly advertising budget(in thousand) and the sales(in millions) for a sample of 12 months. The data are summarized as follows: x¯ = 50, y¯ = 10.8, s_x = 5.6, s_xy = 56.7, s_∈ = 18.3

1. Calculate the leat squares line and interpret the coefficients.

2. Determine the Standard error of the estimate.

3. Estimate a confidence interval for β₁ with 95% confidence.

4. Test H₀: β₁ = 0, H₁: β₁ ≠ 0 at 5% significance level.

5. Calculate and interpret the coefficient of determination.