Broadway shows, part 4.

Consider the coefficient of Playing Weeks in the regression table of Exercise 14.

a) State the standard null and alternative hypotheses for the true coefficient of Playing Weeks.

b) Test the null hypothesis 1at a = 0.052 and state your conclusion.

c) A Broadway investor challenges your analysis. He points out that the scatterplot of Gross vs. Playing Weeks in Exercise 12 shows a strong relationship and claims that your result in part a can’t be correct. Explain to him why this is not a contradiction.