A Local Tire Dealer Wants to Predict the Number of Tires

question 139

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 monthly tire sales (in thousands of tires) and monthly advertising expenditures (in thousands of dollars). The simple linear regression equation is ŷ = 3 + 1x, and the sample correlation coefficient (r²) = .6364. Test to determine if there is a significant correlation between the monthly tire sales and monthly advertising expenditures. Use H₀: ρ = 0 vs. H_A: ρ ≠ 0 at α = .05.

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Definitions:

True Objections

Genuine concerns or issues raised by a prospect that can potentially block a sale, requiring direct attention and resolution.

Technology Integration

The coherent incorporation of technological tools into a business, educational setting, or daily activities to enhance functionality and efficiency.

Closing Sales

The final step in the sales process where the seller successfully secures a commitment to purchase from the buyer.

Closing Sales

The final step in the sales process where the salesperson secures commitment from the buyer, resulting in a completed purchase.