A marketing manager for a chain of hardware stores needed more information about the effectiveness of the three types of advertising that the chain used. There are direct mailing, newspaper advertising, and television commercials. Data in the file ?F15 - Assignment 1-Data?, in the Question 4 worksheet contains the weekly gross sales, and advertising expenditures for the three types of advertising. All values are in thousands of dollars. TOTAL 20 MARKS
Determine the regression equation (5 MARKS)
What is the coefficient of determination and is the model valid? (5 MARKS)
Should any of the independent variables be removed from the model? Explain your answer. (5 MARKS)
What is the Adjusted R2 for your model? As you go through a step-wise procedure in multiple regression, why should you pay attention to the Adjusted R2?
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