Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I believe that cars with more mileage are worth less money. I decide to run a statistical analysis at the a = 0.05 significance level
I believe that cars with more mileage are worth less money. I decide to run a statistical analysis at the a = 0.05 significance level to test my claim. From a large website specializing in selling used cars, I sample 6 used 2012 sedans at random. For each sedan, I record its mileage and the price that the car is listed at. Data are as follows: Mileage 68160 123940 62100 56240 92020 62270 Price 11000 6440 12240 17790 11390 15350 Assume that responses follow the model Price = Bo + By(Mileage) + & Where the error terms & satisfy the necessary conditions for performing a hypothesis test. e. (2pts) Under the null hypothesis, the t-statistic has a t distribution with how many degrees of freedom? f. (2pts) What is the p-value? (Round answers to 4 decimal points) g. (2pts) What do you conclude? O Reject the null hypothesis for the alternative hypothesis. Conclude that there is no association between a car's mileage and its listed price. O Reject the null hypothesis for the alternative hypothesis. Conclude that higher mileage cars have lower listed prices. O Do not reject the null hypothesis for the alternative hypothesis. There is not enough evidence to conclude that higher mileage have lower listed prices. O Do not reject the null hypothesis for the alternative hypothesis. Conclude that higher mileage cars have lower listed prices
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started