Alan Bissell,market analyst for City Sound Mart,is analyzing the relation between heavy metal CD sales and the size of the teenage population.He gathers data from six sales districts.Alan's dependent variable is annual heavy metal CD sales (in $1,000,000's),and his independent variable is teenage population (in 1,000's).Regression analysis of the data yielded the following tables: Using  = 0.05,Alan should ___. A)increase the sample size B)not reject H₀:  ₁ = 0 C)reject H₀:  ₁ = 0 D)suspend judgment E)reject H₀:  ₀= 0

Question

Quizplus · Accepted Answer

Based on the regression analysis table, the p-value for the F-test is less than 0.05, which means that there is a significant linear relationship between heavy metal CD sales and the size of the teenage population. Therefore, Alan should reject the null hypothesis that there is no relationship between these variables and conclude that there is a significant relationship between them. Increasing the sample size may help increase the precision of the estimate, but it is not necessary to make the decision about the relationship. Suspending judgment is not appropriate since there is a significant result. Option E includes additional variables that are not present in the analysis. Thus, option C is the best choice.

Alan Bissell,market Analyst for City Sound Mart,is Analyzing the Relation