MATHS 1140
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MATH 1140 FINAL EXAM 2 | VERIFIED SOLUTION
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(f) The following table gives the R2s from auxiliary regressions between the explanatory variables as well as the sample correlations between the explanatory variables. The results suggest that there are no substantial correlations between pt and the advertising variables, but the correlation between at and a2 is relatively high. Whether or not it is a
problem depends on whether we have been able to estimate the effect of advertising on total revenue sufficiently precisely. In this regard the...
Exam (elaborations)
MATH 1140 FINAL EXAM 2 | VERIFIED SOLUTION
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ago
(f) The following table gives the R2s from auxiliary regressions between the explanatory variables as well as the sample correlations between the explanatory variables. The results suggest that there are no substantial correlations between pt and the advertising variables, but the correlation between at and a2 is relatively high. Whether or not it is a problem depends on whether we have been able to estimate the effect of advertising on total revenue sufficiently precisely. In this regard the...
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