Question

A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms. He estimates the model: Sales = β0 + β1 Advertising + ε. The following table shows a portion of the regression results. Coefficients Standard Error t-stat p-value Intercept 37.9 14.15 2.678 0.0057 Advertising 2.75 1.43 -1.923 0.0598 When testing whether the slope coefficient differs from 3, the value of the test statistic is ________.

          A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms. He estimates the model: Sales = β0 + β1 Advertising + ε. The following table shows a portion of the regression results.

Coefficients
Standard Error
t-stat
p-value
Intercept
37.9
14.15
2.678
0.0057
Advertising
2.75
1.43
-1.923
0.0598

When testing whether the slope coefficient differs from 3, the value of the test statistic is ________.

Added by Joann M.

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