A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of monthly tire sales (in thousands of tires)and monthly advertising expenditures (in thousands of dollars).The simple linear regression equation is = 3 + 1X and sample correlation coefficient (r²)= .6364.Test to determine if there is a significant correlation between the monthly tire sales and monthly advertising expenditures.Use H₀: $\rho$= 0 vs.H_A: $\rho$ $\neq$ 0 at $\alpha$ = .05. A)Reject the null hypothesis B)Fail to reject the null hypothesis

Question

Quizplus · Accepted Answer

Failed to reject H₀,and there is no significant correlation.

A Local Tire Dealer Wants to Predict the Number of Tires