Annie Mikhail, Market Analyst for a National Company Specializing in Historic

Multiple Choice

Annie Mikhail, market analyst for a national company specializing in historic city tours, is analyzing the relationship between the sales revenue from historic city tours and the size of the city.She gathers data from six cities in which the tours are offered.Annie's dependent variable is annual sales revenues and her independent variable is the city population.Regression analysis of the data yielded the following tables. $\begin{array}{|c|c|c|c|c|}\hline \text { Souros } & \text { df } & \text { SS } & \text { MS } & F \\\hline \text { Recrem } & 1 & 3.550325 & 3.550325 & 63.20809 \\\hline \text { Residval } & 4 & 0224675 & 0.056169 & \\\hline \text { Total } & 5 & 3.775 & & \\\hline\end{array}$
$$\begin{array} { | c | } \hline S _ { \mathrm { e} } = 0.237 \\\hline r ^ { 2 } = 0.940483\\\hline\end{array}$$ Using $\alpha$ = 0.05, Annie should ________________.

A) increase the sample size
B) not reject H₀: $\beta$ ₁ = 0
C) reject H₀: $\beta$ ₁ = 0
D) suspend judgment
E) reject H₀: $\beta$ ₀ = 0