Question 3 [20 marks] a) The summary output below shows the number of shares selling (in millions) and the expected price (in RM) for 10 selected stocks offering. SUMMARY OUTPUT Regression Statistics Multiple R 0.861 R Square 0.742 Adjusted R Square 0.710 Standard Error 1.424 Observations 10 ANOVA df SS MS F Significance F Regression 1 46.675 46.675 23.014 0.001 Residual Total 8 16.225 2.028 9 62.900 Conduct a hypothesis test to determine whether there is a positive relationship between the number of shares selling (in millions) and the expected price (in RM) at a 5% significance level. [9 marks] b) Endurance tire maker wishes to review its warranty for their tires. The warranty is for 40,000 KM. The distribution of tire wear is normally distributed with a population standard deviation of 12,000 KM. A tire company believes that the tire actually lasts more than 40,000 KM. A sample of 49 tires revealed that the mean number of kilometers is 45,000. Use the test statistic approach to test the null hypothesis with a=0.05. i. State the hypotheses. ii. State the critical value and give the decision rule. iii. Compute the value of test statistic. iv. Make a decision and conclude your results. [2 marks] [2 marks] [3 marks] [4 marks]