An automobile dealer wants to see if there is a relationship between monthly sales and the interest rate. A random sample of 4 months was taken. The results of the sample are presented below. The estimated least squares regression equation is
= 75.061 - 6.254x
Monthly Sales (y)
Interest Rate (In Percent) (x)
22
9.2
20
7.6
10
10.4
45
5.3
?
a.Obtain a measure of how well the estimated regression line fits the data.b.You want to test if there is a significant relationship between the interest rate and monthly sales at the 1% level of significance. State the null and alternative hypotheses.c.At the .01 level, use a t test to test the hypotheses.d.Construct a 99% confidence interval for the average monthly sales for all months with a 10% interest rate.e.Construct a 99% confidence interval for the monthly sales of one month with a 10% interest rate.
What will be an ideal response?
| a. | r2 = .8687 |
| b. | H0: ?1 = 0 |
Ha: ?1 0 | |
| c. | test statistic t = -3.64 > critical t = -9.925; do not reject H0 |
| d. | -33.15 to 58.20; therefore, 0 to 58.20 |
| e. | -67.07 to 92.12; therefore, 0 to 92.12 |
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Answer the following statements true (T) or false (F)
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A. $36,600. B. $35,600. C. $53,400. D. $31,600.