What proportion of the observed variation in weekly revenue

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Reference no: EM131435855

Business and Management

The owner of a small ice cream stand believes that total weekly revenue (y, in dollars) during the summer months is related to money spent on advertising (x, dollars per week). A random sample of summer weeks was selected, and the resulting data are given in the following table.

X	30	300	380	275	350	190	85
y	957	1125	1202	1028	1134	1124	1062

a. Find the estimated regression line, and complete the ANOVA table.

b. What proportion of the observed variation in weekly revenue is explained by this regression model?

c. Find a 99% confidence interval for the regression parameter b1.

d. Conduct a hypothesis test of H0: b0 = 0 versus Ha: β0 > 0. Interpret the results. (What happens if the owner spends nothing on advertising in a week?)

Reference no: EM131435855

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