A colleague claims that he is 90% sure that advertising does not improve sales and in fact, it might even diminish your revenues. Can you reject his null hypothesis? Explain calculating the test statistic and setting up the hypothesis test correctly (H0: β1 ≤ 0)
A colleague claims that he is 90% sure that advertising does not improve sales and in fact, it might even diminish your revenues. Can you reject his null hypothesis? Explain calculating the test statistic and setting up the hypothesis test correctly (H0: β1 ≤ 0)
Chapter9: Sequences, Probability And Counting Theory
Section: Chapter Questions
Problem 47RE: For the following exercises, assume two die are rolled. 47. Construct a table showing the sample...
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A colleague claims that he is 90% sure that advertising does not improve sales and in fact, it might even diminish your revenues. Can you reject his null hypothesis? Explain calculating the test statistic and setting up the hypothesis test correctly (H0: β1 ≤ 0)
Transcribed Image Text:The following six advertising campaigns show the number of ads (x) and the
resulting sales revenues (y) from each advertising campaign. Table 1 illustrates the data.
1.
TABLE 1. Sample data for sales (y) and number of ads(x)
Obs.
у
X; – x (x; – x)² yi - ỹ (X¡ – x)(y; – y)
e (yi - 7)? (ŷi – y)?
Vi – y)²
1
10
49
6 41
3
16
49
4
8 36
12
46
6.
8 43
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