KnickKnacks Co

Subject:StatisticsPrice:2.89 Bought3

Share With

KnickKnacks Co. is evaluating store performance for retail distributors of their products. Management believes that the key factor in retail sales is square footage of display space devoted to the products. They have collected data from 132 stores and hired you to analyze these data, which include square footage of KnickKnack display space (in sq. ft), the size of the local population (in 10,000's, e.g., town of population 35,000 is represented in data as Population = 3.5), and whether the printed advertisements were circulated in local newspaper in each week (Ads = 1 if circulated, and 0 if not circulated), and weekly sales of KnickKnacks (in $1000's) (dependent variable). Residual plots do not exhibit any significant sign of violations on linear regression assumptions.

 

Based on the regression output, is the overall model statistically significant at 1% significance level (α = 0.01)?

 

a.

Since the p-value is practically zero, we reject the null hypothesis of the F-test. Hence, the overall model is statistically significant.

 

b.

Since the p-value is practically zero, we do not reject the null hypothesis of the F-test. Hence, the overall model is not statistically significant.

 

c.

Since the p-value is greater than 0.01, we do not reject the null hypothesis of the F-test. Hence, the overall model is not statistically significant.

 

d.

Since the p-value is greater than 0.01, we reject the null hypothesis of the F-test. Hence, the overall model is statistically significant.

Expand image