TABLE 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this,the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable,the company will conduct a simple linear regression on the data below:
-Referring to Table 13-2,to test that the regression coefficient,β₁,is not equal to 0,what would be the critical values? Use α = 0.05.

Question

TABLE 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this,the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable,the company will conduct a simple linear regression on the data below:

-Referring to Table 13-2,to test that the regression coefficient,β₁,is not equal to 0,what would be the critical values? Use α = 0.05.

Quizplus · Accepted Answer

The critical values for testing a regression coefficient at α = 0.05 typically use a t-distribution. The value ±2.7764 corresponds to a common critical value for a two-tailed test with a small sample size, often around 10 degrees of freedom.

TABLE 13-2 A Candy Bar Manufacturer Is Interested in Trying to Estimate