M Chap 13 Chegg Study Guided Sol X eztomheducationcomhmtpx P

M Chap 13 Chegg Study Guided Sol... X ezto.mheducation.com/hm.tpx P Most visited G Google Intellicast-Radar M My Yahoo K Questions 3-6 (of 20) Bardl Trucking Co., located in Cleveland, Ohlo, makes dellverles In the Great Lakes reglon, he Southeast, and the North Jim Bardi, the presldent, ls studying the relationship between the distance a shlpment must travel and the length of time, In days, It takes the shipment to arrive at Its destination. To Investigate, Mr. Bardi selected a random sample of 20 shipments made last month. Shipplng distance ls the Independent variable and shipping tlme ls the dependent variable. The results are as follows: Shipping Time Shipping Time Shipment Distance (mlles) Shipment Distance (miles) 630 669 736 812 676 840 742 603 634 616 823 661 835 860 669 663 809 698 20 Click h 10.00 points State the decision rule for 0.10 significance level: Ho: p s 0; H1: p 0. (Round your answer to 3 decimal places Reject Ho if t References eBook & Resources e a search F Save & Exit Submit Required Information 8:54 AM 11/17/2015

Solution

We have given that shipping time is dependent variable (y) and distance is the dependent variable (x).

State the decision rule for alpha = 0.10 significance level

Given hypothesis is ,

H0 : <=0 Vs H1 : > 0

The test statistic is,

t = r * sqrt(n-2) / sqrt(1-r²)

where r is the sample correlation coefficient

n is the number of data pairs.

We can calculate r by using EXCEL

syntax : =CORREL(array1 , array2)

where array1 is distance and array2 is shipping time.

r = 0.310

t = 0.310 * sqrt( 20 - 2) / sqrt(1 - 0.310²)

t = 1.384

Now we have to find critical value by using t-distribution.

EXCEL syntax :

=tinv(probability , d.f.)

where probability = 2 * alpha

d.f. = n - 2

Critical value = 1.330

Reject H0 id t > 1.330

value of the test statistic is 1.384

% of variation in shipping time is explained by shipping distance is

r² = 0.310² = 0.096 = 0.10

105 of the variation in shipping time is explained by shipping distance.