Question

3)-7) The mangers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales (in 1,000 $) generated by the broker. They sampled 25 brokers and determine the number of new clients they have enrolled in the last year and the data are partially presented in the table with the following results: y 25.5+1.35X, SST=1430, SSR=1188.55, and --(x - 2)2=102. Broker Clients (X) Sales (Y). 1 26 60 2 23 57 25 24 59 At 5% level of significance, which of the following represents the results of the relevant hypothesis test? no decision no test reject HO fail to reject HO

Answer 1

for above

test statistic F =MSR/MSE=((1430-1188.55)/1)/(1188.55/(25-2))=4.67

for 0.05 level and (1,25-2=23) degree of freedom; critical F =finv(0.05,1,23)=4.28

since test statistic >critical value Correct decision is:

reject HO