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:

Place Theory

A theory concerning the perception of sound that posits that different parts of the cochlea are activated by different frequencies.

Perceived Pitch

The subjective experience or interpretation of the frequency of a sound, determining how high or low it seems.

Basilar Membrane

A critical structure in the cochlea of the inner ear that plays a key role in the sense of hearing by vibrating in response to sound.

Auditory Stimulus

A sound or noise that triggers a response in the auditory system of the brain.