Questions from Business Statistics

Q: What is the purpose of testing whether β1 = 0? If

What is the purpose of testing whether β1 = 0? If we reject β2 = 0, does it imply a good fit?

Q: The Dow Jones Industrial Average (DJIA) and the Standard &

The Dow Jones Industrial Average (DJIA) and the Standard & Poor’s 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the...

Q: Is the number of square feet of living space a good predictor

Is the number of square feet of living space a good predictor of a house’s selling price? The following data collected in April, 2015, show the square footage and selling price for fifteen houses in W...

Q: Jensen Tire & Auto is in the process of deciding whether to

Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be...

Q: In a manufacturing process the assembly line speed (feet per minute

In a manufacturing process the assembly line speed (feet per minute) was thought to affect the number of defective parts found during the inspection process. To test this theory, managers devised a si...

Q: A sociologist was hired by a large city hospital to investigate the

A sociologist was hired by a large city hospital to investigate the relationship between the number of unauthorized days that employees are absent per year and the distance (miles) between home and wo...

Q: The regional transit authority for a major metropolitan area wants to determine

The regional transit authority for a major metropolitan area wants to determine whether there is any relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses resulte...

Q: Consider the following hypothesis test: H0: µ ≤ 50

Consider the following hypothesis test: H0: µ ≤ 50 Ha: µ > 50 A sample of 60 is used and the population standard deviation is 8. Use the critical value approach to state your conclusion for each of th...

Q: A marketing professor at Givens College is interested in the relationship between

A marketing professor at Givens College is interested in the relationship between hours spent studying and total points earned in a course. Data collected on 10 students who took the course last quart...

Q: Market betas for individual stocks are determined by simple linear regression.

Market betas for individual stocks are determined by simple linear regression. For each stock, the dependent variable is its quarterly percentage return (capital appreciation plus dividends) minus the...