MSci609_Quiz_6

MSci609_Quiz_6 - y increases as annual income x increases....

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Department of Management Sciences Faculty of Engineering University of Waterloo MSci 609 Quantitative data Analysis for Management Sciences QUIZ 6 NAME: ID: Problem A consumer investigator obtained the following least squares straight line model (based on a sample of n=100 families) relating the yearly food cost y for a family of 4 to annual income x : x y 26 . 0 467 ˆ + = . In addition, the investigator computed the quantities s = 1.1, SS xx = 26. a) Compute the observed p -value for a test that determines whether mean yearly food cost
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Unformatted text preview: y increases as annual income x increases. b) We would like to conclude that the mean yearly food cost increases as annual income increase. What would be the smallest value of significance level that needs to be used in this case? c) Comment on the value of in part (b). Solution : The consumer investigator wants to test: b) What is the smallest level that would reject the null hypothesis and make the regression model adequate....
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