Business Statistics
A researcher is testing the null hypothesis that there is no relationship between two continuous variables
(customers’ loyalty: continuous dependent variable and service quality: continuous independent variable). From a
sample of n = 25, she determines that b1 = +4.8 and Sbl = 1.6.
a) What is the value of tSTAT?
b) What statistical decision should the researcher make? (for 95% confidence intervals, the t value is -2.145 and
+2.145).
c) Construct a 95% confidence interval estimate of the population slope, f3i (for 95% confidence intervals, the t
value is -2.145 and +2.145). (5 marks)
Question 2
The marketing manager of a large supermarket chain has the business objective of using shelf space more
efficiently. Toward that goal, he would like to use shelf space to predict the sales of pet food. Data is collected
from a random sample of 12 equal-sized stores. For those data, SSR = 20535 and SST = 30025.
a) Determine the coefficient of determination, r2, and interpret its meaning.
b) Determine the standard error of the estimate.
Question 3