ISDS 2001 Chapter : Course Outline Chapter 4 Sample Test Solution Explanation 1
15 Mar 2019
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A national restaurant chain is interested in determining a mathematical model for predicting their weekly sales based upon advertising expenditures. They take a random sample of store locations and collect data on weekly sales (y) and amount spent on radio advertising (x1) and. They then conduct a data mining project aimed at determining the best set of predictors. Use the output below to answer questions 1 3: Which of the following set of predictors is best for predicting weekly sales? (use = 0. 01) Recall from statistics: if p-value < alpha, then x1 is a good predictor. Use alpha =0. 01 as our level of significance. P-value for radio = 0. 0003 which is less than alpha, so we accept. P-value for newspaper = 0. 0173 which is greater than alpha, so we reject. P-value for both radio and newspaper = 0. 2322 which is greater than alpha, so we reject. R-sq. for both radio & newspaper is 0. 412, adj.
