Annie Mikhail, market analyst for a national company specializing in historic city tours, is analyzing the relationship between the sales revenue from historic city tours and the size of the city. She gathers data from six cities in which the tours are offered. Annie's dependent variable is annual sales revenues and her independent variable is the city population. Regression analysis of the data yielded the following tables: Using α = 0.05, Annie should ___. A) increase the sample size B) not reject H₀: β₁ = 0 C) reject H₀: β₁= 0 D) suspend judgment

Question

Quizplus · Accepted Answer

The null hypothesis H₀: β₁= 0 states that there is no relationship between the independent variable (city population) and the dependent variable (sales revenue). Since the p-value for the coefficient of the independent variable is less than 0.05, Annie should reject the null hypothesis and conclude that there is a significant relationship between the two variables.

Annie Mikhail, Market Analyst for a National Company Specializing in Historic