A researcher analyzes the factors that may influence amusement park attendance. She estimates the following model: Attendance = β₀ + β₁Price + β₂Temperature + β₃Rides + ε, where Attendance is the daily attendance (in 1,000s), Price is the gate price (in $), Temperature is the average daily temperature (in °F), and Rides is the number of rides at the amusement park. A portion of the regression results is shown in the accompanying table. When testing whether the explanatory variables Temperature and Rides are jointly significant, the p-value associated with the test is 0.0000. At the 1% significance level, the researcher ________. A) rejects H₀, and concludes that at least one of the explanatory variables, Temperature and Rides, is significant in explaining Attendance B) does not reject H₀, and concludes that at least one of the explanatory variables, Temperature and Rides, is significant in explaining Attendance C) rejects H₀, and cannot conclude that at least one of the explanatory variables, Temperature and Rides, is significant in explaining Attendance D) does not reject H₀, and cannot conclude at least one of the explanatory variables, Temperature and Rides, is significant in explaining Attendance

Question

Quizplus · Accepted Answer

The p-value associated with the joint test of Temperature and Rides being significant is 0.0000, which is less than the 1% significance level. Therefore, the null hypothesis H₀ (that neither Temperature nor Rides are significant) is rejected. The researcher can conclude that at least one of the explanatory variables, Temperature and Rides, is significant in explaining Attendance.

A Researcher Analyzes the Factors That May Influence Amusement Park