Annie Mikhail,market analyst for a national company specializing in historic city tours,is analyzing the relationship between the sales revenue from historic city tours and the size of the city.She gathers data from six cities in which the tours are offered.Annie's dependent variable is annual sales revenues and her independent variable is the city population.Regression analysis of the data yielded the following tables.
Using $\alpha$ = 0.05,Annie should ________________.
A)increase the sample size
B)not reject H0: $\beta$1 = 0
C)reject H0: $\beta$1 = 0
D)suspend judgment
E)reject H0: $\beta$0 = 0

Question

Annie Mikhail,market analyst for a national company specializing in historic city tours,is analyzing the relationship between the sales revenue from historic city tours and the size of the city.She gathers data from six cities in which the tours are offered.Annie's dependent variable is annual sales revenues and her independent variable is the city population.Regression analysis of the data yielded the following tables.   
Using $\alpha$ = 0.05,Annie should ________________.
A)increase the sample size 
B)not reject H0: $\beta$1 = 0 
C)reject H0: $\beta$1 = 0 
D)suspend judgment 
E)reject H0: $\beta$0 = 0

Quizplus · Accepted Answer

Based on the regression analysis tables, the p-value for the regression coefficient (Slope) is less than 0.05. Therefore, Annie should reject the null hypothesis (H0: β1=0) and conclude that there is a significant relationship between the city population and sales revenue from historic city tours. Increasing the sample size is not necessary as there are already six cities included in the analysis.

Annie Mikhail,market Analyst for a National Company Specializing in Historic α\alphaα

Annie Mikhail,market Analyst for a National Company Specializing in Historic $\alpha$