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 whether a change in price will have any impact on average sales, what would be the critical values? Use α = 0.05.
A) ± 2.5706
B) ± 2.7765
C) ± 3.1634
D) ± 3.4954

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 whether a change in price will have any impact on average sales, what would be the critical values? Use α = 0.05.
A) ± 2.5706 
B) ± 2.7765 
C) ± 3.1634 
D) ± 3.4954

Quizplus · Accepted Answer

The critical values for a two-tailed t-test at α = 0.05 with a typical degree of freedom (often around 30 for small samples) is approximately ± 2.7765.

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