An Ardent Fan of Television Game Shows Has Observed That

question 198

Essay

An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief, she gathers data about the last eight winners of her favourite game show. She records their winnings in dollars and their years of education. The results are as follows. $$\begin{array} { | c | c | c | } \hline \text { Contestant } & \begin{array} { c } \text { Years of } \\\text { education }\end{array} & \text { Winnings } \\\hline 1 & 11 & 750 \\\hline 2 & 15 & 400 \\\hline 3 & 12 & 600 \\\hline 4 & 16 & 350 \\\hline 5 & 11 & 800 \\\hline 6 & 16 & 300 \\\hline 7 & 13 & 650 \\\hline 8 & 14 & 400 \\\hline\end{array}$$ Conduct a test of the population slope to determine at the 5% significance level whether a linear relationship exists between TV game show contestants' years of education and their winnings.

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Definitions:

Financial Structure

Refers to the mix of debt and equity finance used by a company to finance its operations and grow.

Machinery

Equipment or devices designed for a specific purpose, often used in manufacturing or industrial processes.

Investing Activities

Transactions and events that relate to the investment of the company’s cash, including acquisitions and disposals of long-term assets and other investments not included in cash equivalents.

Cash Flows

The net amount of cash being transferred into and out of a business.