Question: An advertising firm wishes to demonstrate to potential clients the effectiveness of the advertising campaigns it has conducted. The firm is presenting data from 9 recent campaigns, with the data indicating a correlation between advertising and sales. In particular, r = 0.73 for the variables cost of advertising campaign and resulting percentage increase in sales for the 9 campaigns.

Using this information, test for a significant linear relationship between these two variables by doing a hypothesis test regarding the population correlation coefficient ρ. (Assume that the two variables have a bivariate normal distribution.) Use the 0.10 level of significance, and perform a two-tailed test. Then fill in the table below

The null hypothesis: H ₀ : _____

The alternative hypothesis H ₁ : ______

The type of test statistic: (Z, t , chi square, F ) (if t, what is the degree of freedom:)

(if chi square, what is the degree of freedom)

(if F, what is the degree of freedom dfn:___ dfd: __)

The value of the statistic :

(round your answer to at least three decimal place) _______

The critical value for a test at the 0.10 level of significance: ______

(round your answer to at least three decimal places)

Based on the data, can we conclude (using the 0.10 level) that there is a significant linear relationship between the cost of the advertising campaign and the resulting percentage increase in sales? _____

Price: $2.99

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