[2 marks] 3 ID: MST.FET.R.SLRM.01.0010A The Vopstra telecommunication company ha

Question

[2 marks] 3 ID: MST.FET.R.SLRM.01.0010A The Vopstra telecommunication company has increased its branding of phones in the stores that sell them. To varying degrees, the shelves that contain Vopstra phones now have advertizing in the form of small posters ØVOPSTRA Different stores contain different amounts of advertizing, and Vopstra would like to know if there is any relationship between amount spent on advertizing (X) and sales of Vopstra phones (Y). A random sample of 50 stores is selected. For each store, the amount in dollars spent on advertizing and the amount in dollars made in sales of Vopstra phones are recorded. The following regression equation is calculated: y - 79.22 3.70x Along with this, the following values were calculated: SSX 108.16 SST 260.97 Se20.12 Vopstra plans on conducting a hypothesis test with 95% confidence and the following hypotheses: Ho: ?1-0 ou may find this Student's t distribution table useful a) Calculate the test statistic (t) for this test. Give your answer to 4 decimal places b) The null hypothesisrejected in this test.

Explanation / Answer

a) here estimated std error for slope =sb1 =se/sqrt(SSx) =20.12/sqrt(108.16)

therefore test statistic t =coeffiicent/std error =3.70*sqrt(108.16)/20.12=1.9125

b)

the null hypothesis should not be rejected in this test.

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