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The marketing manager of a large supermarket chain would like to use shelf space

ID: 2958749 • Letter: T

Question

The marketing manager of a large supermarket chain would like to use shelf space to predict the sales of pet food. For a random sample of 12 similar stores, she gathered the following information regarding the shelf space, in feet, devoted to pet food and the weekly sales in hundreds of dollars.

Store 1 2 3 4 5 6
Shelf Space 5 5 5 10 10 10
Weekly Sales 1.6 2.2 1.4 1.9 2.4 2.6

Store 7 8 9 10 11 12
Shelf Space 15 15 15 20 20 20
Weekly Sales 2.3 2.7 2.8 2.6 2.9 3.1

Q.: Is the correlation between weekly sales and shelf space significant at the .01 level of significance?

A. No, the sample correlation coefficient does not exceed the critical value.
B. Yes, the p-value of the test for significance is less than .01.
C. Yes, the value of the test statistic does not exceed the critical value.
D. Yes, the computed t-test statistic is less than the critical value.

Explanation / Answer

Answer: B. Yes, the p-value of the test for significance is less than .01.