The business problem facing a consumer products company is to measure the effectiveness of
different types of advertising media in the promotion of its products. Specifically, the company is
interested in the effectiveness of radio advertising in thousands of dollars ($X_1$) and newspaper
advertising in thousands of dollars ($X_2$) on the sales in thousands of dollars (Y). Data were
collected from a sample of 22 cities. The following is the ANOVA table for the regression
model:
Significance
df
SS
MS
F
F
Regression
2
2028032.69 1014016.345 40.15823
Residual
19
Total
21
Also, $SSR(X_1) = 1216940$ and $SSR(X_2) = 632259.4483$
From the data above answer the following 3 questions:
11. At the 0.05 level of significance, we want to test whether there is evidence that the
newspaper advertising makes a significant contribution to the regression model. The test
statistic is:
a. 32.12
b. 55.28
c. 45.33
d. 31.07
e. 39.09