points Print Exercise 6-3 Algo Osteoporosis is a degenerative disease that primarily affects women over the age of 60. A research analyst wants to forecast sales of StrongBones. a prescription drug for treating this debilitating disease. She uses the model Sales - .80 + lPopulation + zlncome + s. where Sales refers to the sales of StrongBones (in $1,000,000s], Population is the number ofwomen over the age of 60 [in millions], and Income is the average income of women over the age of 60 {in $1,000s). She collects data on 25 cities across the United States and obtains the following regression results: Standard Coefficients Error t: Stat: p-Valus Intercept 10.32 3.94 2.62 0.0256 Population 5.10 2.39 3.33 0.0431 Income 7.55 6.45 1.1? 0.3526 a. What is the sample regression equation? {Enter your answers in millions rounded to 2 decimal places.) Sales = I I + :IPopulation-r :| Income b-1. Interpret the coefficient of population. 0 As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $8.10 million. 0 As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.55 million. 0 As the number of women over the age of 60 increases by 1 million, sales of Strongones is predicted to increase by $8.10 million, holding income constant. 0 As the number of women over the age of 60 increases by 1 million, sales of StrongBones is predicted to increase by $7.55 million, holding income constant. b-2. Interpret the coefficient of income. 0 As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.10 million. 0 As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.55 million. 0 As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $8.10 million, holding population constant. 0 As the average income of women over the age of 60 increases by $1,000, sales of StrongBones is predicted to increase by $7.55 million, holding population constant. c. Predict sales ifa city has 1.0 miliion women over the age of60 and their average income is $42,000. {Enter your answer in millions rounded to 2 decimal places.) Sales = I I 2 Exercise 6-29 Algo In order to examine the relationship between the selling price of a used car and its age, an analyst uses data from 20 recent transactions and estimates Price = 8 + 1Age + . A portion of the regression results is shown in the accompanying table. 5 Standard points Coefficients Error t Stat p-Value Intercept 21, 258.96 734.41 28. 947 1. 51E- 16 Age -1, 203.25 126.91 Print a. Specify the competing hypotheses in order to determine whether the selling price of a used car and its age are linearly related. OHO: B1 = 0; HA: B1 0 b. Calculate the value of the test statistic. (Negative values should be indicated by a minus sign. Round your answer to 3 decimal places.) Test statistic c-1. Find the p-value. O p-value _ Picture 0.10 O 0.05 Picture p-value