A Local Tire Dealer Wants to Predict the Number of Tires

question 58

Short Answer

A local tire dealer wants to predict the number of tires sold each month. He believes that the number of tires sold is a linear function of the amount of money invested in advertising. He randomly selects 6 months of data consisting of tire sales (in thousands of tires) and advertising expenditures (in thousands of dollars). Based on the data set with 6 observations, the simple linear regression model yielded the following results.
∑X = 24
∑X² = 124
∑Y = 42
∑Y² = 338
∑XY = 196
Find the rejection point for the t statistic at α = .05 and test H₀: β₁ = 0 vs. H_a: β₁ ≠ 0.

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Definitions:

Relaxation Response

A physiological state of deep rest that can be elicited through various practices such as meditation or deep breathing, counteracting stress effects.

Religion-based Techniques

Strategies or practices grounded in religious beliefs used to solve problems, improve well-being, or achieve spiritual goals.

Active Attitude

A proactive and engaged approach to situations, characterized by taking initiative and directly influencing outcomes.

Non-analytic Way

Pertaining to approaches or methods that do not involve detailed examination or analysis, often relying on intuition or abstract thinking.