Suppose the following regression equation was generated from the sample data of

Question

Suppose the following regression equation was generated from the sample data of 50 cities relating number of cigarette packs sold per 1000 residents in one week to tax in dollars on one pack of cigarettes and if smoking is allowed in bars PACKS, = 59682.369232-1108.2672 18TAX, + 176.9261 59BARS, + BARS, = 1 if city i allows smoking in bars and BARS, = 0 if city i does not allow smoking in bars. This equation has an R2 value of 0.347972 and the coefficient of BARS, has a P-value of 0.133971. Which of the following conclusions is valid? Answer 2 Points Keypad According to the regression equation, cities that allow smoking in bars have lower cigarette sales than cities that do not allow smoking in bars. Regardless of whether or not there is a smoking ban, if a city increases its cigarette tax by one dollar cigarette sales will increase by approximately 1108 packs. If there is no cigarette tax in a city that allows smoking in bars, the approximate number of cigarette packs sold per 1000 people is 59682. There is not enough evidence at the 0.05 level of significance to support the claim that cities that allow smoking in bars have higher cigarette sales than cities that do not allow smoking in bars.

Explanation / Answer

Answer: If there is no cigarette tax in a city that allows smoking in bars, the approximate number of cigarette packs sold per 1000 people is 59682.

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