Question

The Vopstra telecommunication company has increased its branding of phones in the stores that sell them. To varying degrees, the shelves that contain Vopstra phones now have advertizing in the form of small posters.

Different stores contain different amounts of advertizing, and Vopstra would like to know if there is any relationship between amount spent on advertizing (X) and sales of Vopstra phones (Y). A random sample of 50 stores is selected. For each store, the amount in dollars spent on advertizing and the amount in dollars made in sales of Vopstra phones are recorded. The following regression equation is calculated:

y^ = 79.98 + 4.23x

Along with this, the following values were calculated:

SSX = 170.78

SST = 203.76

s_e = 28.96

Vopstra plans on conducting a hypothesis test with 95% confidence and the following hypotheses:

H₀: β₁ = 0

H₁: β₁ ≠ 0

You may find this Student's t distribution table useful.

a)Calculate the test statistic (t) for this test. Give your answer to 4 decimal places.

t =

b)The null hypothesis is, is not rejected in this test.

Answer 1