Question

A manager wishes to find out whether there is a relationship between the number of radio ads aired per week and the amount of sales (in thousands of dollars) of a product. The data for the sample follow.

# of ads, x	2	5	8	8	10	12
Sales, y	$2	$4	$7	$6	$9	$10

1. The alternative hypothesis would be:

2. The test is 2-tailed and the degrees of freedom are 4.

True

False

3. If α = .05, then the critical values are found in the t-table and are + 2.776.

True

False

4.

After finding the test value t = 12.793, we will decide to reject the null hypothesis.

True

False

5. The summary would be:

		There is a significant linear relationship between number of radio ads and sales.
		There is not a significant linear relationship between number of radio ads and sales.

Answer 1

1. The alternative hypothesis would be:

There is a significant linear relationship between number of radio ads and sales.

2. The test is 2-tailed and the degrees of freedom are 4.

df = n - 2 = 6 - 2 = 4

True

3. If α = .05, then the critical values are found in the t-table and are + 2.776.

for df = 4 and α = .05 t = +/-2.776

t critical value are -2.776 and 2.776

False

4. After finding the test value t = 12.793, we will decide to reject the null hypothesis.

As t > t_c ( we reject the null hypothesis )

True

5. The summary would be:

There is a significant linear relationship between number of radio ads and sales.