Suppose you are a manager for a carnival game at the local fair. You want to estimate how many prizes you will need to have in stock to give out, based on the number of tickets purchased before the fair begins. You examine the past 24 fair openings to make your regression model, and find ŷ = 234.29 +0. 1x, where x is the number of tickets purchased before the fair begins, and ŷ is the predicted demand for prizes during the first day of the fair. You also find SE(b₁) = 0.045. Using a hypothesis test with a significance level of 1% select the correct interpretation of your analysis for the test below. [H₁ : ß₁ = 0 HA: B₁0
Suppose you are a manager for a carnival game at the local fair. You want to estimate how many prizes you will need to have in stock to give out, based on the number of tickets purchased before the fair begins. You examine the past 24 fair openings to make your regression model, and find ŷ = 234.29 +0. 1x, where x is the number of tickets purchased before the fair begins, and ŷ is the predicted demand for prizes during the first day of the fair. You also find SE(b₁) = 0.045. Using a hypothesis test with a significance level of 1% select the correct interpretation of your analysis for the test below. [H₁ : ß₁ = 0 HA: B₁0
Chapter3: Polynomial Functions
Section: Chapter Questions
Problem 18T
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Transcribed Image Text:Suppose you are a manager for a carnival game at the local fair. You want to
estimate how many prizes you will need to have in stock to give out, based
on the number of tickets purchased before the fair begins. You examine the
past 24 fair openings to make your regression model, and find
ŷ
-
234.29 +0. 1x, where is the number of tickets purchased
before the fair begins, and ŷ is the predicted demand for prizes during the
first day of the fair. You also find SE(b₁) = 0.045.
Using a hypothesis test with a significance level of 1% select the correct
interpretation of your analysis for the test below.
Ho: B₁ = 0
HA: B₁0
Transcribed Image Text:The null hypothesis cannot be rejected, since the test statistic is less
extreme than the critical value.
The null hypothesis is rejected, since the test statistic is more extreme
than the critical value.
The null hypothesis is rejected, since the test statistic is less extreme
than the critical value.
The null hypothesis cannot be rejected, since the test statistic is more
extreme than the critical value.
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