Answer:
The advertising cost, X₄ = 5.626 million
The 80% confidence limits for X₄ is (5.041 , 6.100)
The 80% prediction limits for X₄ is (4.048 , 7.094)
Step-by-step explanation:
Using MINITAB
The regression equation is X₄ = 4.14 + 0.0431 X₁ - 0.800 X₂ + 0.00059 X₃ - 0.661 X₅ + 0.057 X₆
Predictor Coef SE Coef T P
Constant 4.142 1.626 2.55 0.019
X₁ 0.043089 0.009466 4.55 0.000
X₂ -0.7998 0.2515 -3.18 0.005
X₃ 0.000590 0.004221 0.14 0.890
X₅ -0.6606 0.1542 -4.28 0.000
X₆ 0.0574 0.1254 0.46 0.652
S = 1.07911 R-Sq = 93.4% R-Sq(adj) = 91.8%
Analysis of Variance
Source DF SS MS F P
Regression 5 345.966 69.193 59.42 0.000
Residual Error 21 24.454 1.164
Total 26 370.420
Source DF Seq SS
X₁ 1 309.464
X₂ 1 8.699
X₃ 1 5.994
X₅ 1 21.566
X₆ 1 0.244
Unusual Observation
Obs X₁ X₄ Fit SE Fit Residual St Resid
17 398 5.500 7.714 0.641 -2.214 -2.55 R
27 400 7.000 7.366 1.025 -0.336 -1.00 X
Where R is observation with a large standardized residual.
Where X is observation whose X values give it large influence.
Predicted values for new Observations
New
Obs Fit SE Fit 80% Cl 80% Pl
1 5.571 0.400 (5.041 , 6.100) (4.048 , 7.094)
Values of Predictors for New Observations
New
Obs X₁ X₂ X₃ X₅ X₆
1 163 2.40 188 6.60 10.0
∴ The advertising cost, X₄ = 5.626 million, The 80% confidence limits for X₄ is (5.041 , 6.100), and The 80% prediction limits for X₄ is (4.048 , 7.094)
