Question
Suppose data on advertising expenditures and revenue (both in thousands of dollars) for a certain restaurant follow. Advertising Expenditures Revenue 1 19 2 33 4
Suppose data on advertising expenditures and revenue (both in thousands of dollars) for a certain restaurant follow.
Advertising Expenditures | Revenue |
---|---|
1 | 19 |
2 | 33 |
4 | 43 |
6 | 39 |
10 | 52 |
14 | 53 |
20 | 55 |
(a)Letxequal advertising expenditures (in thousands of dollars) andyequal revenue (in thousands of dollars). Use the method of least squares to develop a straight line approximation of the relationship between the two variables. (Round your numerical values to two decimal places.)=
(b)Test whether revenue and advertising expenditures (both in thousands of dollars) are related at a 0.05 level of significance. (Use theFtest.)State the null and alternative hypotheses.
H0:1= 0 Ha:10H0:00 Ha:0= 0 H0:10 Ha:1= 0H0:10 Ha:1< 0H0:0= 0 Ha:00
Find the value of the test statistic. (Round your answer to two decimal places.)Find thep-value. (Round your answer to three decimal places.)p-value =
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