Consider the following regression output with Sunday circulationof newspapers as dependent variable and Daily circulation asindependent variable. Both Sunday and Daily circulation andmeasured in thousands of copies.
| | |
Dependent Variable: Sunday | |
| Variable: | Intercept | Daily |
| Coefficient | 24.763 | 1.351 |
| Std. Error | 46.99 | 0.09 |
| t Stat | 0.527 | 14.532 |
| P-value | 0.602 | 0.000 |
Given the output above choose whether the following statement isTRUE or FALSE.
Question 1
This regression is bad because we are only 39.8% confident that theintercept coefficient is not 0.
| a: TRUE |
| b: FALSE Question 2 ( it part 2 of the firstqueestion)
Consider again the regression output of Question 1. How muchconfidence do you have that Daily increase of two thousand copieswill result in Sunday increase of at least 2340 copies? | a: less than 50% confidence | | b: at least 95% confidence but less than 99.7% confidence | | c: at least 99.7% confidence | | d: I do not have enough information to determine theconfidence. |
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