A Local Tire Dealer Wants to Predict the Number of Tires

Multiple Choice

A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of monthly tire sales (in thousands of tires) and monthly advertising expenditures (in thousands of dollars) .The simple linear regression equation is = 3 + 1X and sample correlation coefficient (r²) = .6364.Test to determine if there is a significant correlation between the monthly tire sales and monthly advertising expenditures.Use H₀: $\rho$ = 0 vs.H_A: $\rho$ $\neq$ 0 at $\alpha$ = .05.

A) Reject the null hypothesis
B) Fail to reject the null hypothesis