A Local Tire Dealer Wants to Predict the Number of Tires

question 139

Short Answer

A local tire dealer wants to predict the number of tires sold each month. He believes that the number of tires sold is a linear function of the amount of money invested in advertising. He randomly selects 6 months of data consisting of monthly tire sales (in thousands of tires) and monthly advertising expenditures (in thousands of dollars). The simple linear regression equation is ŷ = 3 + 1x, and the sample correlation coefficient (r²) = .6364. Test to determine if there is a significant correlation between the monthly tire sales and monthly advertising expenditures. Use H₀: ρ = 0 vs. H_A: ρ ≠ 0 at α = .05.

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Definitions:

Unconscious Conflicts

Psychological struggles often stemming from early life experiences that one is not fully aware of but influence behaviors and emotions.

Exosystem

Community institutions and settings that indirectly influence the child, such as the school board and the parents’ workplaces.

Vice President

An executive or the second-in-command position in an organization or government, typically responsible for taking over leadership in the absence of the President.

Soccer Games

Competitive sports matches involving two teams, each striving to score goals by hitting a ball into the opponent's net using any part of the body except for the arms and hands.