In a study of revenue generated by national lotteries, the following regression equation was fitted to data from 29 countries with lotteries:

where
y = dollars of net revenue per capita per year generated by the lottery
x1 = mean per capita personal income of the country
x2 = number of hotel, motel, inn, and resort rooms per thousand persons in the country
x3 = spendable revenue per capita per year generated by pari-mutuel betting, racing, and other legalized gambling
x4 = percentage of the nation€™s border contiguous with a state or states with a lottery
The numbers in parentheses under the coefficients are the estimated coefficient standard errors.
a. Interpret the estimated coefficient on x1.
b. Find and interpret a 95% confidence interval for the coefficient on x2 in the population regression.
c. Test the null hypothesis that the coefficient on x3 in the population regression is 0 against the alternative that this coefficient is negative. Interpret your findings.

Transcribed Image Text:

y =-31.323 + 0.4045% + 0.8772x2-365.01x3-9.9298x4 0.00755) 0.3107) (263.88) (3.4520) R251