ome An anajyst was ntereasted In the reiationehp berween a company assets and sa

Question

ome An anajyst was ntereasted In the reiationehp berween a company assets and sales. She created the displayed rogression analysis. Depedent variable ias LogSaloe nts of these varlables to make the relationship0.4749 with 79-2-77 degrees of freedom R squared 33.1% more linear. The assumptions for regression inference appeared to right to complete parts a and b. Variable Coefficient SE/Coof t-ratio P.value Intercept LogAssets 0.634 0.5516 1.15 02537 1.395 0.420 3.32 0.0014 a) is there a significant inear association between LogAssets and LogSales? Find the t-value and P-value to tost an a First, state the appropriate hypotheses. Ho: Thero is | | linear association between LogAssets and LogSales MA There is inear association between Loghssals and LogSales G 0) onten Conclusion in context appropriate hypothesis and state your (p/710) Option

Explanation / Answer

Question a)

H0: There is no linear association between LogAssets and LogSales (b1 =0)

HA: There is a linear association between LogAssets and LogSales (b1¹0)

t = 1.15

P-value = 0.2537

D) the high P-value indicates there is insufficient evidence of a linear association between LogAssets and LogSales.

Question b)

A) A company’s assets may be of some help in predicting sales. Since R^2 = 33.1%, it is true that 33.1% of the variability in LogSales can be associated for by LogAssets.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.