PROBLEM 1

The data regarding cost and related variables of a promotional insert in major magazines is given in the Table below. Answer the questions that follow.

A) Develop the Multiple Regression equation using EXCEL (the dependent variable Y is cost of a promotional insert).

B) Using the equation developed in A, compute the predicted cost of a promotional insert cost for a circulation of 7000, with a median age of 43 and median income of $25,000?

C) Is the overall regression line significant at 0.10 level?

D) Is median age significant at 0.10 level?

E) Which independent variable/s, if any, would you omit and why?

F) Drop only one of these that you identified in Question E and re-run the multiple regression on EXCEL. Are there any improvements in the t-Stat or p-value?

NEED ALL EXCEL SPREADSHEET AND SUPPORTING INFORMATION