A Local Tire Dealer Wants to Predict the Number of Tires

question 16

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_α: β₁ > 0.

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Definitions:

Fully Functioning Person

A term in humanistic psychology describing an individual who is living in tune with their deepest feelings, desires, and impulses, achieving self-actualization and personal growth.

Unconditional Positive Regard

A practice in client-centered therapy involving the therapist offering the client acceptance and support regardless of what the client says or does.

Authentic Person

An individual who lives in alignment with their true self, values, and beliefs, without pretending to be someone they're not.

Retail Outlets

Physical or online stores where products are sold directly to consumers, offering a range of goods for personal or household use.