LIMOBAP Quiz 2 Set ____1__ November 11, 2014
Name Velilla, Janelle Natalie L.
Computer Number______34_______
1. Calculate the correla’on between dependent and independent variables. Test whether the independent
variable (X) is a signi0cant explanatory variable of the dependent variable (Y). ( 5 pts)
Ho: Sales and the nearest compe’tor are correlated
H1: Sales and the nearest compe’tor are not correlated
SAS output:
Pearson Correlation Coefficients, N = 25
Prob > |r| under H0: Rho=0
Sales Nearest_Competito
r
Sales 1.0000
0
0.25645
0.2159
Nearest_Competito
r0.2564
5
0.2159
1.00000
Decision and conclusion
P-value (0.2159) > alpha (0.05). Therefore, do not reject Ho. Sales and the nearest compe’tor are correlated.
R = 0.25645. Therefore, there is a weak but posi’ve correla’on between sales and nearest compe’tor.
2. Generate the es’mated simple linear regression model. Test whether the parameter is signiticant. ( 8
pts.)
Write the es‘mated Simple Linear Regression Model:
Ho:
H1:
SAS Output:
Parameter Estimates
Variable DF Parameter
Estimate
Standard
Error
t Value Pr > |t| 95% Confidence Limits
Intercept 1 125.58022 60.01595 2.09 0.0476 1.42776 249.73267
Parameter Estimates
Variable DF Parameter
Estimate
Standard
Error
t Value Pr > |t| 95% Confidence Limits
Sales 1 0.01673 0.01314 1.27 0.2159 -0.01047 0.04392
Decision and conclusion:
0 is in the con0dence interval of (-0.01047, 0.04392). Therefor is not a signi0cant parameter.
3. Generate the ANOVA table and interpret. ( 5 pts.)
Ho:
H1:
SAS output:
Analysis of Variance
Source D
F
Sum of
Squares
Mean
Square
F Value Pr >
F
Model 1 1930.5270
0
1930.5270
0
1.62 0.215
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