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A Marketing Analyst Wants to Examine the Relationship Between Sales

Question 7

Multiple Choice

A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and collects monthly data for 25 firms. He estimates the model: Sales = β0 + β1 Advertising + ε. The following table shows a portion of the regression results. A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and collects monthly data for 25 firms. He estimates the model: Sales = β<sub>0</sub> + β<sub>1</sub> Advertising + ε. The following table shows a portion of the regression results. Which of the following are the competing hypotheses used to test whether the slope coefficient differs from 3? A) H<sub>0</sub>: b<sub>1</sub> = 3; H<sub>A</sub>: b<sub>1</sub> ≠ 3 B) H<sub>0</sub>: b<sub>1</sub> = 2.88; H<sub>A</sub>: b<sub>1</sub> ≠ 2.88 C) H<sub>0</sub>: β<sub>1</sub> = 3; H<sub>A</sub>: β<sub>1</sub> ≠ 3 D) H<sub>0</sub>: β<sub>1</sub> = 2.88; H<sub>A</sub>: β<sub>1</sub> ≠ 2.88 Which of the following are the competing hypotheses used to test whether the slope coefficient differs from 3?


A) H0: b1 = 3; HA: b1 ≠ 3
B) H0: b1 = 2.88; HA: b1 ≠ 2.88
C) H0: β1 = 3; HA: β1 ≠ 3
D) H0: β1 = 2.88; HA: β1 ≠ 2.88

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