Estimating the regression equation.
You have been provided with the following regression output. The dependent variable is unit sales of a product, and the independent variable is the dollar value of newspaper advertising for that product. The unit of analysis is weeks; that is, each of the observations in the underlying sample data represents a separate week of sales and newspaper advertising.
Regression Analysis: Sales versus Newspaper
The regression equation is
Sales = 6514 + 0.0386 Newspaper
|
Predictors
|
Co-eff
|
SECo-eff
|
T
|
P
|
|
Constant
|
6514
|
1138
|
5.72
|
0.000
|
|
Newspaper
|
0.038625
|
0.005494
|
7.03
|
0.00
|
S = 5630.70 R-Sq = 24.3% R-Sq(adj) = 23.8%
Analysis of Variance
|
Source
|
D F
|
S
|
M S
|
F
|
P
|
|
Regression
|
1
|
1567134272
|
1567134272
|
49.43
|
0.000
|
|
Residual Error
|
154
|
4882532724
|
31704758
|
|
|
|
Total
|
155
|
6449666996
|
|
|
|
1. How much of the variability has been explained?
2. Is there a relationship between sales and newspaper advertising? Maintain your answer?
3. What does the constant coefficient 6514 mean?