Ticket prices, part 4.

Consider the coefficient of

# Shows in the regression table of Exercise 14.

a) State the standard null and alternative hypotheses for the true coefficient of # Shows.

b) Test the null hypothesis (at 0.05) and state your conclusion.

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