Use the Following Sample Data to Answer the Next

question 38

Short Answer

Use the following sample data to answer the next questions. The paired data
consist of a random sample of the cost of regionally advertising (in thousands of
dollars) a certain pharmaceutical drug and the number of new prescriptions
written (in thousands). Use the Spearman's rank correlation coefficient to test for
a correlation between the cost of advertising and the number of new prescriptions
written. Use a significance level of .
-Determine the value of the test statistic.

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Definitions:

Administration Route

The path by which a drug, fluid, poison, or other substance, is taken into the body.

Nose

The part of the face that houses the nostrils and organs of smell and forms the beginning of the respiratory tract.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.

Diseconomies Of Scale

The situation when a firm's costs per unit increase as it produces more output, opposite of economies of scale.