Question

A publisher of college textbooks conducted a study to relate profit per text y to cost of sales x over a 6-year period when its sales force (and sales costs) were growing rapidly.  These inflation-adjusted data (in thousands of dollars) were collected:

x  = {5.0, 5.6, 6.1, 6.8, 7.4, 8.6}                y = {16.5, 22.4, 24.9, 28.8, 31.5, 35.8}

1. Construct a 95% CI for Beta one

2. What is the test statistic value?

3. Calculate r

4. Calculate r ²

^5. Interpet r ²

^6. When x = 5 then E(Y) = ?

Answer 1