A Local Tire Dealer Wants to Predict the Number of Tires

Essay

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 tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).Based on the data set with 6 observations,the simple linear regression model yielded the following results. Find the rejection point for the t statistic at α = .05 and test H₀: β₁ = 0 vs.H_a: β₁ ≠ 0.