A researcher analyzes the factors that may influence amusement park attendance. She estimates the following model: Attendance = β₀ + β₁Price + β₂Temperature + β₃Rides + ε, where Attendance is the daily attendance (in 1,000s), Price is the gate price (in $), Temperature is the average daily temperature (in °F), and Rides is the number of rides at the amusement park. A portion of the regression results is shown in the accompanying table. When testing whether Rides is significant at the 1% significance level, she ________. A) rejects H₀: β₃ = 0, and concludes that Rides is significant B) does not reject H₀: β₃ = 0, and concludes that Rides is significant C) rejects H₀: β₃ = 0, and cannot conclude that Rides is significant D) does not reject H₀: β₃ = 0, and cannot conclude that Rides is significant

Question

Quizplus · Accepted Answer

The null hypothesis is H₀: β₃ = 0, which assumes that the coefficient on Rides is zero, meaning that Rides has no significant effect on attendance. The researcher wants to test whether Rides is significant at the 1% significance level. If the p-value of the hypothesis test is less than 0.01, she can reject the null hypothesis and conclude that Rides is significant. According to the regression results in the table, the p-value of Rides is 0.000, which is less than 0.01. Therefore, she rejects the null hypothesis and concludes that Rides is significant at the 1% significance level.

A Researcher Analyzes the Factors That May Influence Amusement Park