0% found this document useful (0 votes)
40 views

A) Diagram of Sales and Advertising: Test Exercice 1

This document discusses regression analysis of sales and advertising data. In 3 sentences: A linear regression of sales and advertising showed a positive slope, but the coefficient for advertising was not statistically significant. A histogram of the residuals was not normally distributed, violating an assumption for linear regression. Limiting the data to daily sales or removing outliers could produce a satisfactory regression model.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
40 views

A) Diagram of Sales and Advertising: Test Exercice 1

This document discusses regression analysis of sales and advertising data. In 3 sentences: A linear regression of sales and advertising showed a positive slope, but the coefficient for advertising was not statistically significant. A histogram of the residuals was not normally distributed, violating an assumption for linear regression. Limiting the data to daily sales or removing outliers could produce a satisfactory regression model.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

F T ra n sf o F T ra n sf o

PD rm PD rm
Y Y
Y

Y
er

er
ABB

ABB
y

y
bu

bu
2.0

2.0
to

to
re

re
he

he
k

k
lic

lic
C

C
w om w om
w

w
w. w.
A B B Y Y.c A B B Y Y.c

Test Exercice 1

a) Diagram of Sales and Advertising

50
40
Sales
30
20

6 8 10 12 14 16
Advertising

I would find a line regression with a positive slope. And find how increased advertising will increase
sales.

b)

sales Coef. Std. Err. t P>t [95% Conf. Interval]


advertising -0.324575 .458911 -0.71 0.488 -1.288711 0.6395612
_cons 29.62689 4.881527 6.07 0.000 19.37119 39.8826

The coefficient and are 29.62 and -.32 respectively. b is no significantly different from 0.

c)
F T ra n sf o F T ra n sf o
PD rm PD rm
Y Y
Y

Y
er

er
ABB

ABB
y

y
bu

bu
2.0

2.0
to

to
re

re
he

he
k

k
lic

lic
C

C
w om w om
w

w
w. w.
A B B Y Y.c A B B Y Y.c

.15
.1
Density
.05
0

-5 0 5 10 15 20
Residuals

The distribution of the residuals is not normally distributed

d) To get a satisfactory regression model we could only consider sales of the day or drop the
observation.

e)

Sales Coef. Std. Err. t P>t [95% Conf. Interval]

advertising 0.375 .0881964 4.25 0.001 0.1889218 0.5610782


_cons 21.125 .9548481 22.12 0 19.11045 23.13955

The coefficient and are 21.125 and .375 respectively. . b is significantly different from 0

f) the differences between the coefficients are that in the observqacion was removed and the largest
resiudal. A high residual in observation of the week 12 shows that there are other factors that increased
sales. And if we drop the observation 12, we get the expected regression line.

You might also like