TABLE 13-2
a Candy Bar Manufacturer Is Interested in Trying

question 152

Multiple Choice

TABLE 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
$$\begin{array} { l l c } \hline \text { City } & \text { Price } ( \$ ) & \text { Sales } \\\hline \text { River Falls } & 1.30 & 100 \\\text { Hudson } & 1.60 & 90 \\\text { Ellsworth } & 1.80 & 90 \\\text { Prescott } & 2.00 & 40 \\\text { Rock Elm } & 2.40 & 38 \\\text { Stillwater } & 2.90 & 32\end{array}$$
-Referring to Table 13-2, to test that the regression coefficient, þ1, is not equal to 0, what would be the critical values? Use ? = 0.05.

• A) ±3.1634
• B) ±2.5706
• C) ±2.7764
• D) ±3.4954

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Definitions:

Upcoming Project

A planned endeavor that is scheduled to take place in the near future.

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