Solved

The Owner of an Air Conditioner Business Wants to Investigate

Question 83

Essay

The owner of an air conditioner business wants to investigate the relationship between the weekly number of air conditioners sold with average weekly temperature and the seasons of the year.
A random sample of 14 weeks is taken, with the average temperature of that week (in degrees Celsius) and the quarter from which that week belonged, noted.
There are three indicator variables: March, September and December.
Excel is used to generate the following multiple linear regression output.  SUMMARY OUTPUT  Regression Statistics  Multiple R 0.99 R Square 0.97 Adjusted RSquare 0.96 Standard Error 4.54 Observations 14.00 ANOVA  df SSMSF Significance  Regression 4.006999.271749.8284.860.00 Residual 9.00185.5820.62 Total 13.007184.86 Coefficients  Standard  Error  tStat  P-value  Lower 95%  Upper 95% Intercept 17.948.542.100.0737.271.38 Temperature 1.000.352.840.020.201.79 March 1.014.600.220.839.3911.40 September 7.225.581.290.235.4019.84 Deomber 27.876.554.260.0013.0642.68\begin{array}{|l|r|r|r|r|r|c|}\hline \text { SUMMARY OUTPUT } & \\\hline \text { Regression Statistics } & \\\hline \text { Multiple R } & 0.99 \\\hline \text { R Square } & 0.97 \\\hline \text { Adjusted RSquare } & 0.96 \\\hline \text { Standard Error } & 4.54 \\\hline \text { Observations } & 14.00 \\\hline\\\hline \text { ANOVA }\\\hline &{\text { df }} &{SS} &MS & F& {\text { Significance }} \\\hline \text { Regression } & 4.00 & 6999.27 & 1749.82 & 84.86 & 0.00 \\\hline \text { Residual } & 9.00 & 185.58 & 20.62 & & \\\hline \text { Total } & 13.00 & 7184.86 & & & \\\hline\\\hline & \text { Coefficients } & \begin{array}{c}\text { Standard } \\\text { Error }\end{array} & \text { tStat } & \text { P-value } & \text { Lower 95\% } & \begin{array}{c}\text { Upper } \\95 \%\end{array} \\\hline \text { Intercept } & -17.94 & 8.54 & -2.10 & 0.07 & -37.27 & 1.38 \\\hline \text { Temperature } & 1.00 & 0.35 & 2.84 & 0.02 & 0.20 & 1.79 \\\hline \text { March } & 1.01 & 4.60 & 0.22 & 0.83 & -9.39 & 11.40 \\\hline \text { September } & 7.22 & 5.58 & 1.29 & 0.23 & -5.40 & 19.84 \\\hline \text { Deomber } & 27.87 & 6.55 & 4.26 & 0.00 & 13.06 & 42.68 \\\hline\end{array} Test the significance of the coefficient of Temperature, at the 5% level of α. Justify your choice of the alternative hypothesis.

Correct Answer:

verifed

Verified

Choose to do a right tailed test because...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents