An Automobile Dealer Wants to See If There Is a Relationship

question 63

Essay

An automobile dealer wants to see if there is a relationship between monthly sales and the interest rate.A random sample of 4 months was taken.The results of the sample are presented below.The estimated least squares regression equation is



= 75.061 - 6.254X

a.Obtain a measure of how well the estimated regression line fits the data.
b.You want to test to see if there is a significant relationship between the interest rate and monthly sales at the 1% level of significance.State the null and alternative hypotheses.
c.At 99% confidence,test the hypotheses.
d.Construct a 99% confidence interval for the average monthly sales for all months with a 10% interest rate.
e.Construct a 99% confidence interval for the monthly sales of one month with a 10% interest rate.

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Definitions:

Outward

Often used in economics to refer to an expansion or increase, such as in outward economic growth, indicating increasing production, income, or development.

Iraq's Oil Refineries

Facilities in Iraq where crude oil is processed and refined into more useful petroleum products like gasoline and diesel.

Destroyed

Refers to something that has been severely damaged or ruined, often beyond repair or restoration.

Production Efficiency

A state in which goods and services are produced at the lowest possible cost while not wasting any resources.