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Suppose data on advertising expenditures and revenue (both in thousands of dollars) for a certain restaurant follow. 5::::::tsllll:gs Revenue 1 1 8 2 3 2
Suppose data on advertising expenditures and revenue (both in thousands of dollars) for a certain restaurant follow. 5::::::tsllll:gs Revenue 1 1 8 2 3 2 4 43 6 41 1 0 5 3 14 53 20 54 (a) Let x equal advertising expenditures (in thousands of dollars) and y equal 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.) y: (b) Test whether revenue and advertising expenditures (both in thousands of dollars) are related at a 0.05 level of significance. (Use the t test.) State the null and alternative hypotheses. 0H020=0 Ha:o*0 Hoz1=0 Ha:10 OHo:o0 Ha:o=0 OHo:1$0 Ha:1=0 OHozlzo Find the value of the test statistic. (Round your answer to two decimal places.) Find the p-value. (Round your answer to three decimal places.) p-value = State your conclusion. O Do not reject Ho. We cannot conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant. O Reject Ho. We cannot conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant. Reject Ho. We conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant. O Do not reject Ho. We conclude that the relationship between advertising expenditures and revenue (both in thousands of dollars) is significant
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