Question

# A researcher analyzes the factors that may influence amusement park attendance. She estimates the following model:...

A researcher analyzes the factors that may influence amusement park attendance. She estimates the following model: Attendance = β0 + β1Price + β2Temperature + β3Rides + ε, where Attendance 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.

 df SS MS F Significance F Regression 3 29,524.41 9,841.47 2.18E-14 Residual 26 2,564.37 98.63 Total 29 32,088.78 Coefficients Standard Error t-stat p-value Lower 95% Upper 95% Intercept 27.328 40.254 0.5032 −55.415 110.071 Price −1.201 0.294 0.0004 −1.805 −0.598 Temperature 0.008 0.208 0.9693 -0.419 0.435 Rides 3.621 0.364 2.32E-10 2.874 4.369

When testing whether Temperature is significant at the 5% significance level, she ________.

Multiple Choice

• rejects H0:β2 = 0, and concludes that Temperature is significant

• does not reject H0:β2 = 0, and concludes that Temperature is significant

• rejects H0:β2 = 0, and cannot conclude that Temperature is significant

• does not reject H0:β2 = 0, and cannot conclude that Temperature is significant

Answer: does not reject H0:β2 = 0, and cannot conclude that Temperature is significant

Explanation:

Null Hypothesis, Ho: β2 = 0 i.e Temperature is not significant

Alternative Hypothesis, Ha: β2   0 i.e. Temperature is significant

Decision Rule: Reject the Null Hypothesis Ho if p-value <

Conclusion: Since p-value = 0.9693 > so we fail to Reject the Null Hypothesis and conclude that   β2 = 0 i.e Temperature is not significant

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• Mr. Conrado Aristi faces the following decision: The National Medical Federation wanted to use his hotel...
• Given 3.0 mL of 3-methyl-1-butanol how would I synthesize the derivative Naphthylurethane. Please provide a detailed...
• A point charge q1 = 3.05 nC is located on the x-axis at x = 2.30...
• Identify and describe three different problem solving strategies. Suggest how each strategy might be fruitfully applied...
• There are many issues affecting organizations today, such as employee retention, flexible work schedule, contingent workforce,...
• Sammy's is the hot new lunch spot among the hipsters, who flock there at noon for...