The following table shows sales (y) and marketing costs (x) for four firms. Test the null hypothesis that the slope in the regression line is equal to zero using a significance level of 0.05 (two-tailed test). What is the value of the test-statistic (the ‘w-value’ or sometimes called ‘t-statistic’)? Round your answer to one decimal place. Use at least 5 decimals in all your computations.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The following table shows sales (y) and marketing costs (x) for four firms.
Test the null hypothesis that the slope in the regression line is equal to zero using a significance level of 0.05 (two-tailed test). What is the value of the test-statistic (the ‘w-value’ or sometimes called ‘t-statistic’)? Round your answer to one decimal place. Use at least 5 decimals in all your
computations.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
