Question

The table below shows the number of cars sold last month by seven employees at Concord Motors and their number of years of sales experience.

Experience	Sales
1	8
2	6
2	7
4	14
5	9
6	13
8	10

Management would like to use simple regression analysis to estimate monthly car sales using the number of years of sales experience. Which one of the following statements describes the results of the hypothesis test that the population slope is not equal to zero using alpha = 0.05?

A. Because the absolute value of the test statistic is less than the absolute value of the critical value, we fail to reject the null hypothesis and cannot conclude that the population slope is not equal to zero.

B. Because the absolute value of the test statistic is less than the absolute value of the critical value, we can reject the null hypothesis and conclude that the population slope is equal to zero.

C. Because the absolute value of the test statistic is greater than the absolute value of the critical value, we can reject the null hypothesis and conclude that the population slope is not equal to zero.

D. Because the absolute value of the test statistic is greater than the absolute value of the critical value, we fail to reject the null hypothesis and conclude that the population slope is equal to zero.

Answer 1

Note: If you don’t have Data Analysis plugin installed in your Excel then you install it by clicking on File->Options->Addins->Under Excel Add-ins Click on Go…->Check Analysis ToolPak and click OK. Now you will have Data Analysis option under Data Tab.