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 ± 2.7765 corresponds to the critical t-value for a two-tailed test with a common degree of freedom in small sample sizes.

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