Akiko Hamaguchi is a manager at a small sushi restaurant in

Akiko Hamaguchi is a manager at a small sushi restaurant in Phoenix, Arizona. Akiko is concerned that the weak economic environment has hampered foot traffic in her area, thus causing a dramatic decline in sales. In order to offset the decline in sales, she has pursued a strong advertising campaign. She believes advertising expenditures have a positive influence on sales. To support her claim, Akiko assumes the linear regression model as Sales = ?₀ + ?₁ Advertising + ?₂ Unemployment + ?. A portion of the regression results is shown in the accompanying table. Use Table 2 and Table 4.

Find the value of the appropriate test statistic. (Round your answer to 3 decimal places.)

Find the p-value. (Round your answer to 4 decimal places.)

Solution

(a-1)H₀: ?₁ = ?₂ = 0; H_A: At least one ? _j ? 0

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(a-2) Test statistic

F=8.472

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(a-3)Yes, since the F-test is significant.

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(b-1)H₀: ?₂ ? 0; H_A: ?₂ < 0

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(b-2) p-value= 0.0610