Costco sells paperback books in their retail stores and wanted to examine the re
ID: 1212073 • Letter: C
Question
Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand. The price of a particular novel was adjusted each week and the weekly sales were recorded in the table below. Answer the following questions
x Sales 3 4 6 10 8 10
y Price $12 $11 $10 $9 $8 $7
use the following table to complete the questions
a.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. The test statistic for testing the hypothesis that the population coefficient of determination is greater than zero is ________.
A) 5.60 B) 12.18 C) 8.66 D) 19.50
b.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. Which one of the following statements describes the results of the hypothesis test that the population correlation coefficient is greater than zero using = 0.05?
A) Because the test statistic is greater than the critical value, we fail to reject the null hypothesis and conclude that the population correlation coefficient is greater than zero.
B) Because the test statistic is less than the critical value, we fail to reject the null hypothesis and conclude that the population correlation coefficient is not greater than zero.
C) Because the test statistic is greater than the critical value, we can reject the null hypothesis and conclude that the population correlation coefficient is greater than zero.
D) Because the test statistic is less than the critical value, we fail to reject the null hypothesis and conclude that the population correlation coefficient is greater than zero.
c.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. The 95% confidence interval that estimates the average weekly sales for a price of $9 is ________.
A) (1.96, 13.16) B) (1.26, 13.86) C) (5.93, 9.19) D) (7.26, 7.86)
d.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. The 95% prediction interval that estimates the weekly sales for a price of $9 is ________.
A) (6.36, 8.76) B) (3.39, 11.74) C) (5.06, 10.06) D) (1.26, 13.86)
e.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. Which one of the following statements describes the results of the hypothesis test that the population slope is not equal to zero using = 0.05?
A) Because the absolute value of the test statistic is greater than the absolute value of the critical value, we fail to reject the null hypothesis and conclude that the population slope is equal to zero.
B) Because the absolute value of the test statistic is less than the absolute value of the critical value, we fail to reject the null hypothesis and cannot conclude that the population slope is equal to zero.
C) Because the absolute value of the test statistic is greater than the absolute value of the critical value, we can reject the null hypothesis and conclude that the population slope is not equal to zero.
D) Because the absolute value of the test statistic is less than the absolute value of the critical value, we can reject the null hypothesis and conclude that the population slope is equal to zero.
f.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. The 95% confidence interval for the regression slope is ________.
A) (-1.857, -1.057) B) (-6.057, 3.143) C) (-3.957, 1.043) D) (-2.373, -0.541)
g.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. The test statistic for testing the hypothesis that the population correlation coefficient is greater than zero is ________.
A) 2.24 B) 4.417 C) 1.45 D) 3.25
h.) Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. The theoretical t value for testing the hypothesis that the population correlation coefficient is greater than zero (given of 0.05) is _________.
A) 2.132 B) 1.476 C) 2.776 D) 3.365
Explanation / Answer
a) A) 5.60
b) C) Because the test statistic is greater than the critical value, we can reject the null hypothesis and conclude that the population correlation coefficient is greater than zero.
c) A) (1.96, 13.16)
d) B) (3.39, 11.74)
e) D) Because the absolute value of the test statistic is less than the absolute value of the critical value, we can reject the null hypothesis and conclude that the population slope is equal to zero.
f) C) (-3.957, 1.043)
g) D) 3.25
h)A) 2.132