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Mathematics, 25.12.2019 01:31 jyfye6918

The founder of an application would like to understand how the demand of users varies with advertising spending. during the last 6 weeks, she collects the following user and advertising statistics week # users costs 1 452 2 523 4 3 487 7 576 5 687 6 475 2 the manager considers the following regression model: i. i.d n(0, a2) y bob1xi + ui, i= 1, with uj|x (1) where y: "number of active users in week i " and x; : "advertising spending in week i in 1000]". 6. write down the null and the alternative hypothesis for a two-sided test of 1 10 7. write down the (conditional) distribution of the estimator under the null hypothesis. 8. write down the distribution of the test statistic under the null hypoth- esis se bo the standard errors of the ols estimators are = 103.9194 and se[3] 21.59 9. compute the p-value. what do you conclude? 10. compute the 90% confidence interval for b1. does advertising spending have a significant effect on the number of active users of this app?

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