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 slope is not equal to zero using
α = 0.05?
▸ Because the absolute value of the test statistic is less than the absolute value of the critical value, we fail to reject the null hypothesis and cannot conclude that the population slope is equal to zero.
▸ Because the absolute value of the test statistic is less than the absolute value of the critical value, we can reject the null hypothesis and conclude that the population slope is equal to zero.
▸ Because the absolute value of the test statistic is greater than the absolute value of the critical value, we can reject the null hypothesis and conclude that the population slope is not equal to zero.
▸ Because the absolute value of the test statistic is greater than the absolute value of the critical value, we fail to reject the null hypothesis and conclude that the population slope is equal to zero.
Quick Reply
