Professional Documents
Culture Documents
149.7371
515.9451
= .9
C. V. = .888
D. =
MSR
MSL
=
366.2080
3.5651
= .
E. n -p = - =
F. =
2.8315
0.6989
= . (6)
iv) The 95% CI:
[
_
n-p,
u
2
. _
44-3,
0.05
2
.
. _ .9 .
2
. _ .
(-.,.) 4
{allow for rounding and table value selected}
Since 0 is an element of this interval, we would conclude that the coefficient
is not significantly different from the zero at the 5% level of significance.
(5)
v) The local media coefficient is 1.6577 , which means that 1.6577 thousand
additional cases is sold for every additional R10000 spent on local media
advertising (all other variable remaining the same) . (2)
vi) Yes it would , the national media variable would not have been included
into the model as its . > p-value = .89 > . = o
n
. (3)
c) Comparing the forward and backward selection models:
i) The models differ both models had two explanatory variables of which
one was the national media variable, but the other variable differed .
Reason: The variable selection method differed . In forward selection the
variable that explains most of the unexplained variation in was included,
while in backwards selection the variable that was most insignificant was
removed. This need not result in the same model (as can be seen here). (3)
ii) Backward selection model : (1) highest
2
, (2) highest adjusted
2
and (3)
lowest MSE. It also has the highest -test statistic value corresponding to the
lowest p-value. And all the variable are significant at a lower level of
significance. { for any one of these reasons} (2)
d) Regarding the regression assumptions:
i) |e
]
] = for all (errors have a mean of 0) , |e
]
2
] = o
2
for all (errors
have a fixed variance homoscedasticity) , |e
e
]
] = for all , (errors
are independent) and e
]
(, o
2
) for all (errors are normally distributed)
. (4)
ii) Figure 1: a straight line through the origin
Figure 2: the residuals should be scattered randomly about the 0 value . (2)
iii) Figure 1: Concerns about normality as there is some deviation from a straight
line in the left tail.
Figure 2: Some concerns about heteroscedasticity as the variance is not
constant throughout (more variation in the middle than towards the ends).
Figure 2: Concerns about the residuals having a mean of 0 as most of the
residuals lie above the 0 line. 2 {mark any two of these} (4)