After Transforming Data, a Model of Retail Sales of Furniture

question 24

Multiple Choice

After transforming data, a model of retail sales of furniture and fixtures in Canada on value of building permits yielded the following equation: log10 (Sales) = 2.33 + 0.57 log10 (Value of permits)
What is the predicted value of retail sales if the value of building permits is $700,000?

• A) $458,887.14
• B) $5.66
• C) $2,137.96
• D) $3.33
• E) $22,060.33

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Definitions:

P-value

A statistical measure indicating the probability of observing the given or more extreme outcome assuming the null hypothesis is true.

Population Mean

The average value of a characteristic in a population, calculated by summing the values for the characteristic among all individuals and dividing by the total number of individuals.

Null Hypothesis

A statement that asserts that there is no effect or no difference, and it serves as the starting point for statistical testing.

P-value

It quantifies the likelihood of observing the collected data if the null hypothesis were true, used in hypothesis testing as a critical component.