Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand. The price of a particular novel was adjusted each week and the weekly sales were recorded in the table below.
Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel. Which one of the following statements describes the results of the hypothesis test that the population correlation coefficient is greater than zero using
α = 0.05?
▸ Because the test statistic is greater than the critical value, we can reject the null hypothesis and conclude that the population correlation coefficient is greater than zero.
▸ Because the test statistic is greater than the critical value, we fail to reject the null hypothesis and conclude that the population correlation coefficient is greater than zero.
▸ Because the test statistic is less than the critical value, we fail to reject the null hypothesis and conclude that the population correlation coefficient is greater than zero.
▸ Because the test statistic is less than the critical value, we fail to reject the null hypothesis and conclude that the population correlation coefficient is not greater than zero.
Quick Reply
