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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
Regression
1
1567134272
49.43
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? Support your answer?
3. What does the constant coefficient 6514 mean?
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