Shown Below Is a Portion of a Computer Output for a Regression

question 36

Essay

Shown below is a portion of a computer output for a regression analysis relating Y (demand) and X (unit price).

a.Perform a t test and determine whether or not demand and unit price are related. Let $\alpha$ = 0.05.
b.Perform an F test and determine whether or not demand and unit price are related. Let $\alpha$ = 0.05.
c.Compute the coefficient of determination and fully interpret its meaning. Be very specific.
d.Compute the coefficient of correlation and explain the relationship between demand and unit price.

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Net Credit Sales

The total revenue from sales made on credit, minus any returns or allowances.

Times Interest Earned

Times interest earned, a financial metric, measures a company's ability to meet its interest payments on outstanding debt with its before-tax income.

Income before Income Taxes

Income before income taxes is a financial measure that represents a company's earnings before tax expenses have been deducted.