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The owner of an ice cream shop wants to determine whether there is a relationship between ice cream sales and temperature. The owner collects data on temperature and sales for a random sample of 30 days and runs a regression to determine if there is a relationship between temperature (in degrees) and ice cream sales. The p-value for the two-sided hypothesis test is 0.04. How would you interpret the p-value

User NoxelNyx
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Answer:

Explanation:

Given that the owner of an ice cream shop wants to determine whether there is a relationship between ice cream sales and temperature. The owner collects data on temperature and sales for a random sample of 30 days and runs a regression to determine if there is a relationship between temperature (in degrees) and ice cream sales.

The null hypothesis would have been slope =0 with alternate slope not equal to 0

This is a two tailed test. Let alpha = 5%

p value = 0.04(given)

p <0.05 our alpha

Hence we reject null hypothesis.

The p value 0.04 states that it is less than 0.05 which indicates that there should be a linear relationship between temperature and ice cream sales.

User Tobiloba
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