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# Statistics and Probability Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-12-11 at 6.36.56 PM.png (e) In order to perform a hypothesis test for a linear relationship between the startup cost and annual franchise fee cost, we need four assumptions. They are independence of all pairs of observations (3:1,y1), (332,312), . . . linear relationship between a: and y constant variance of the residuals for all values of a: normal distribution of the residuals for all values of 3: Identify which plot(s) (A-C) on page 5 are used to verify these assumptions. Note that some plots can be used more than once. i. ii. iii. iv. [1pt] Linearity A. Choose the plot(s) from the list that can be used to check the linearity assumption. B. Is this assumption met? YES NO NOT ENOUGH INFORMATION [1pt] Constant Variance A. Choose the plot(s) from the list that can be used to check the constant variance assumption. B. Is this assumption met? YES NO NOT ENOUGH INFORMATION [1pt] Normality A. Choose the plot(s) from the list that can be used to check the normality assumption. B. Is this assumption met? YES NO NOT ENOUGH INFORMATION [1pt] Independence A. Choose the plot(s) from the list that can be used to check the independence as- sumption. B. Is this assumption met? YES NO NOT ENOUGH INFORMATION ATTACHMENT PREVIEW Download attachment Screen Shot 2019-12-11 at 6.37.38 PM.png Plot (A) Plot (C) 150 . . F . 100 start up cost Residual 50- -50 - 1000 .... . 1100 1200 1300 1400 1500 -100- . 0.02- 0.05- 0.6- 0.8- 0.95- 0.98 Plot (B) Normal Quantile start up cost Residual 150 100 50 o 50 .100 1000 1050 1100 1150 1200 1250 1350 1400 annual frachise fee For the following questions, suppose the hypothesis test assumptions are met (regardless of your previous answers). (f) What is the 95% confidence interval for B1? For (ii) and (iii) round your answer to four decimal places. i. [0.5pts]Report the degrees of freedom associated with this confidence interval. ii. [0.5pts]What is the correct critical value (from Table D)? iii. [1pt]Report the lower and upper bounds of your confidence interval.

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