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Question 1 [9 marks] (a) In a test of the alternatives Ho: Bi = 0 versus Ho: Bi = 0, an analyst concluded Ho. Does

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Question 1 [9 marks] (a) In a test of the alternatives Ho: Bi = 0 versus Ho: Bi = 0, an analyst concluded Ho. Does this conclusion imply that there is no linear association between X and Y? Explain. [3 marks] (b) The regression function relating production output by an employee after taking a training program (Y) to the production output before the training program (X) is E{Y} = 20 + .85X, where X ranges from 50 to 100. An observer concludes that the training program does not raise production output on the average. Comment. [3 marks] (c) A member of a student team playing an interactive marketing game received the following computer output when studying the relation between advertising expenditures (X) and sales (Y) for one of the team's products: Estimated regression equation: Y = 350.7 - 0.18X Two-sided P-value for estimated slope: 0.91 The student stated: "The message I get here is that the more we spend on advertising this product, the fewer units we sell!" Comment. [3 marks]

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