A Random Sample of 19 Companies from the Forbes 500

question 10

Multiple Choice

A random sample of 19 companies from the Forbes 500 list was selected, and the relationship between sales (in hundreds of thousands of dollars) and profits (in hundreds of thousands of dollars) was investigated by regression. The following simple linear regression model was used: profits =  +  (sales) , where the deviations were assumed to be independent and Normally distributed, with mean 0 and standard deviation . This model was fit to the data using the method of least squares. The following results were obtained from statistical software. r² = 0.662
S = 466.2 Suppose the researchers test the hypotheses H₀: ₁ = 0, H_a: ₁ > 0. The P-value of the test is:

• A)greater than 0.10.
• B)between 0.10 and 0.05.
• C)between 0.05 and 0.01.
• D)less than 0.01.

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