Question

QUESTION 8 Solve the problem. A collector of grandfather clocks believes that the price received for the clocks at an auction increases with the number of bidders, but at an increasing (rather than a constant) rate. Thus, the model proposed to best explain auction price (y, in dollars) by number of bidders (x) is the quadratic model This model was fit to data collected for a sample of 32 clocks sold at auction; a portion of the printout follows: T FORO: PARAMETER=0 PARAMETER STANDARD ERROR ESTIMATE PROB > IT! VARIABLES NTERCEPT 29.64 5.14 -0.95 0001 0016 3600 286.42 9.66 .06 00007 .31 000067 Give the p-value for testing H0: β2-0 against Ha: β2 0 .0016 .36 .18 .05

Not sure if these are the correct answers. Can someone please help me out?

Answer 1

Ans:

From given data:

Test statistic:

t=-0.000067/0.00007

t=-0.95

Two tailed p-value=0.3600

Correct option is 0.3600