Consider the following to answer the question(s) below:
What affects flat panel LCD TV sales? Flat panel LCD televisions are sold through a variety of outlets. Sales figures (number of units) for the popular Sony Bravia were obtained for last quarter from a sample of 30 different stores. Also collected were data on the selling price and amount spent on advertising the Sony Bravia (as a percentage of total advertising expenditure in the previous quarter) at each store. Below are the results.
-The calculated t-statistic to determine if amount spent on advertising is a significant independent variable in explaining Sony Bravia sales is
A) 3.60
B) -3.04
C) 8.40
D) 10.61
E) This t-statistic cannot be determined.

Question

Consider the following to answer the question(s) below:
What affects flat panel LCD TV sales? Flat panel LCD televisions are sold through a variety of outlets. Sales figures (number of units) for the popular Sony Bravia were obtained for last quarter from a sample of 30 different stores. Also collected were data on the selling price and amount spent on advertising the Sony Bravia (as a percentage of total advertising expenditure in the previous quarter) at each store. Below are the results. 
-The calculated t-statistic to determine if amount spent on advertising is a significant independent variable in explaining Sony Bravia sales is
A) 3.60 
B) -3.04 
C) 8.40 
D) 10.61 
E) This t-statistic cannot be determined.

Quizplus · Accepted Answer

The t-statistic calculated for amount spent on advertising is 8.40, which is greater than the critical t-value at the 0.05 level of significance (t=2.045 for a two-tailed test with 28 degrees of freedom). Therefore, we can reject the null hypothesis and conclude that amount spent on advertising is a significant independent variable in explaining Sony Bravia sales.

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