Since the average purchase amount Purchase12 was such agood predictor, the manager would
Chapter 0, Problem 28.28(choose chapter or problem)
Since the average purchase amount Purchase12 was such agood predictor, the manager would like you to consider another explanatoryvariable that is the average purchase amount from the previous 12 months.Create the new variable (a) What is the R2 for this model? How does this value compare with the R2 inExample 28.24?(b) What is the value of the individual t statistic for this new explanatoryvariable? How much did the individual t statistics change from their previousvalues?(c) Would you recommend this model over the model in Example 28.24? Explain.
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