1. What is the p-value for the t-test of the slope parameter for price, and what
ID: 3313146 • Letter: 1
Question
1. What is the p-value for the t-test of the slope parameter for price, and what do you conclude?
Call: Lm(formulaIC ~ price + income temp + Year, data -icecream) Residuals: Min 1QMedian 3Q Max 0.052572 -0.016208 -0.003463 0.010333 0.075354 Coefficients: Estimate Std. Error t value Pr>ltl) (Intercept) 0.7140368 0.28877942.473 0.02057 * price income temp Year 1.2873605 0.7292161 -1.765 0.08971 0.0023718 0.0021099 -1.124 0.27165 0.0031511 0.0003998 7.882 3.08e-08 0.0508220 0.01653863.073 0.00506 ** Signif. codes : 0 ‘ , 0.001 ‘**, 0.01 ‘*, 0.05 ‘., 0.1 ‘ , 1 Residual standard error: 0.032 on 25 degrees of freedorm Multiple R-squared: 0.796, F-statistic: 24.39 on 4 and 25 DF, p-value: 2.564e-08 Adjusted R-squared: 0.7634Explanation / Answer
From the table,the t value corresponding to the variable price,the slope parameter is -1.2873605,its T statistics has value=-1.765 and p-value is 0.08971.From this we can conclude that,the slope parameter is moderately significant in the model since it is closer to 0.1 but greater than 0.05,we need to find its relationship with orher variables because multiple R-squared is 0.796 which tells that the linear relationship is moderate.not very strong.We need to check if the variable raised to any non-zero power can be more significant in the model.
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