Q1) Using the data advertisement expenditure on sales and fit a suitable econometric

model with the help of SPSS and comment your results with P-Values

Regression

Descriptive Statistics Mean Sales Ads 513.991227 50.727596 Std. Deviation 12.6975747 17.3527508 N 84 84

Correlations Sales Pearson Correlation Sales Ads Sig. (1-tailed) Sales Ads N Sales Ads 1.000 .298 . .003 84 84 Ads .298 1.000 .003 . 84 84

Variables Entered/Removeda Model Variables Entered 1 Adsb Variables Removed . Enter Method

a. Dependent Variable: Sales b. All requested variables entered.

Model Summaryb Model R R Square Adjusted R Square 1 .298a .089 .078 Std. Error of the Estimate 12.1929490

a. Predictors: (Constant), Ads b. Dependent Variable: Sales

ANOVAa Model 1 Regression Residual Total Sum of Squares 1191.181 12190.776 13381.958 df 1 82 83 Mean Square 1191.181 148.668 F 8.012 Sig. .006b

a. Dependent Variable: Sales b. Predictors: (Constant), Ads

Coefficientsa Model Unstandardized Coefficients Standardized Coefficients B 1 (Constant) Ads a. Dependent Variable: Sales 502.917 .218 Std. Error 4.132 .077 .298 Beta 121.700 2.831 .000 .006 t Sig.

Residuals Statisticsa Minimum Predicted Value Residual Std. Predicted Value Std. Residual a. Dependent Variable: Sales 504.025024 -27.2895813 -2.631 -2.238 Maximum 522.339661 38.3170280 2.204 3.143 Mean 513.991227 0E-7 .000 .000 Std. Deviation 3.7883479 12.1192749 1.000 .994 84 84 N 84 84

Charts

Analysis Sales = 502.917 + .218 Advertisements. P-value = 0.006 R2 = 0.089

The correlation between sales and advertisement expenses is .298. Hence there is a positive relationship between sales and advertisement expenses. If the advertisement expenses went up by Rs. 1000 then sales went up by Rs 218. 8.9% variation in sales is explained by advertisement expenses. Since p-value is 0.006 and is less than 0.05. We say the model is statistically significant.