A Marketing Analyst Wants to Examine the Relationship Between Sales

question 7

Multiple Choice

A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and collects monthly data for 25 firms. He estimates the model: Sales = β₀ + β₁ Advertising + ε. The following table shows a portion of the regression results. Which of the following are the competing hypotheses used to test whether the slope coefficient differs from 3?

• A) H₀: b₁ = 3; H_A: b₁ ≠ 3
• B) H₀: b₁ = 2.88; H_A: b₁ ≠ 2.88
• C) H₀: β₁ = 3; H_A: β₁ ≠ 3
• D) H₀: β₁ = 2.88; H_A: β₁ ≠ 2.88

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