4. The following data set presents CPI (Consumer Price Index) of the US and the price...

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Answer 1

Answer #1

Following is the output of regression analysis generated by excel:

(a)

The least square regression line is

y' = -0.1616 +0.0101x

(b)

Here we can check either correlation coefficient, or slope or we can use F test statistics.

Using slope:

Hypotheses are:

Но : 31-0

$H_{a}:eta_{1} eq 0$

From output, test statistics is

t = 11.504

The p-value is 0.0003

Since p-value is less than 0.05 so we reject the null hypothesis. That is we cannot conclude that the pizza price does not depend on the CPI.

Answer 2

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