I need an answer for Part B. A researcher collected data on the reported and aud

Question

I need an answer for Part B.

A researcher collected data on the reported and audited newsstand sales (in thousands) in one year for 10 magazines. The results of the study show that b_1 =0.5551 and S_b_1 =0.0812 At the 0.05 level of significance, is there evidence of a linear relationship between reported sales and audited sales? Construct a 95% confidence interval estimate of the population slope, beta_1. Choose the correct answer below. Yes, since t_STAT is less than the lower critical value. No, since t_STAT is greater than the lower critical value. Yes, since t_STAT is greater than the upper critical value. No, since t_STAT is greater than the upper critical value. The 95% confidence interval is (Round to four decimal places as needed.)

Explanation / Answer

b.

Note that              
              
Lower Bound = b1 - t(alpha/2) * sb1              
Upper Bound = b1 + t(alpha/2) * sb1  
              
where              
              
df = n - 2 = 10 - 2 =   8          

b1 = sample mean =    0.5551          

t(alpha/2) = critical z for the confidence interval =    2.364624252          

sb1 = standard error =    0.0812          
              
Thus,              
              
Lower bound =    0.363092511          
Upper bound =    0.747107489          
              
Thus, the confidence interval is              
              
(   0.363092511   ,   0.747107489   ) [ANSWER]

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