Question

• Where not met in 200 iterations Listed below are paired data consisting of amounts spent on advertising (in millions of dollars) and the profits (in millions of dollars). Determine if there is a significant positive linear correlation between advertising cost and profit. Use a significance level of 0.01 and round all values to 4 decimal places. Advertising Cost Profit 3 19 4 22 5 19 6 26 31 8 33 7 Ho: p = 0 Ha: p > 0 Find the Linear Correlation coefficient Find the p-value p-value The p-value is Greater than a Less than or equal to) a The p-value leads to a decision to Do Not Reject Ho Reject Ho Accept Ho The conclusion is There is a significant positive linear correlation between advertising expense and profit. There is insufficient evidence to make a conclusion about the linear correlation between advertising expense and profit. There is a significant negative linear correlation between advertising expense and profit. There is a significant linear correlation between advertising expense and profit.

Answer 1

The solution to this problem is given by

solution- (x-*) (77) (x-3)2 (8.52 [(x-8)(85) Advertising Bofit Cost 'Y х 15 6.25 36.0 -6 لما -2.5 19 4.5 9 89 -1.5 -3 2.25 4 لما 1-0.5 36 19 -6 5 0.25 0.5 96 0.5 0.25 2.25 36 9 1.5 a 31 7 16.25 64 co 33 2.5 {(xxx) Ex= EY= 150 {(x-x2 Exa = 17.57 = 182 = 90 33 Ex= 33 X = EX 33 6. =55 17.5 {(x-x)2 = Ey = 150 150 6. 25 %= Ey = Ely-7,2 = 189 Elx-x) (Y-T ) = 52

n=6 hc ElX-X) (-) Six-say S2 17.5)×(189) 0.9219

qa= 0.849 Yest to check whether correlation coefficent significant js Mo:8 so Hi g to Test statistics ta un-a -ea 0.9814 √6-2 1-0.849 5.1468 b-value Degree of freedom = n2 = 6-2=4 p( t <-5.1468) + Plt >5,1468) 0.003379+ 0.00379 0.006758 (Rounded value) = 0.0067 comparison At a=0.01 I b-value ca So Reject Ho

The linear correlation coefficient 0.9214 p-value = 0.0067 a decision to The p-value leads leads to Reject Mo Positive The conclusion is There is a significant lineal correlation between advertising exbense and Profit.