A researcher analyzes the factors that may influence amusement park attendance.She estimates the following model: Attendance = β₀ + β₁ Price + β₂ Temperature + β₃ Rides + ε,whereAttendance is the daily attendance (in 1,000s),Price is the gate price (in $),Temperature is the average daily temperature (in ^oF),and Rides is the number of rides at the amusement park.A portion of the regression results is shown in the accompanying table. Which of the following are the hypotheses to test if the explanatory variables Temperature and Rides are jointly significant in explaining Attendance? A) H₀:β₂ = β₃ = 0;H_A: At least one of the coefficients is nonzero. B) H₀:β₂ = β₃ = 0;H_A: At least one of the coefficients is zero. C) H₀:β₀ = β₁ = 0;H_A: At least one of the coefficients is nonzero. D) H₀:β₀ = β₁ = 0;H_A: At least one of the coefficients is zero.

Question

Quizplus · Accepted Answer

The hypotheses to test if the explanatory variables Temperature and Rides are jointly significant in explaining Attendance are: H₀: β₂ = β₃ = 0 (both coefficients are zero) H_A: At least one of the coefficients is nonzero. This is because we want to test if both variables are significant, not just one of them. Option A correctly states these hypotheses.

A Researcher Analyzes the Factors That May Influence Amusement Park